UAE’s capital city of Abu Dhabi has granted Binance permission to offer financial services, a series of regulatory approvals for the exchange.
Financial Services Regulatory Authority and Abu Dhabi’s Global Market (ADGM) have given cryptocurrency exchange Binance permission to operate in the area. Binance will be authorized to provide cryptocurrency custodial services to professional clients once it has satisfied the requirements for its Financial Services Permission, according to a declaration from the financial hub of the capital of the United Arab Emirates. Changpeng Zhao, founder and CEO of Binance, attended Abu Dhabi Finance Week before the news broke.
At the occasion, Zhao shared the stage with Mike Novogratz, CEO and investor of Galaxy Digital, for a lengthy discussion that included the fallout from the ongoing FTX bankruptcy. After receiving in-principle approval from ADGM in April 2022, Binance had already established a presence in Abu Dhabi. Consequently, the exchange was given the green light to act as a broker-dealer for cryptocurrencies and other digital assets.
Although Binance appears ready to start providing its exchange services to users in Abu Dhabi, the announcement was not without its critics. The most notable of these was economist and cryptocurrency skeptic Nouriel Roubini, who at a different panel at the Abu Dhabi Finance Week made harsh remarks regarding the regulatory clearance granted to the crypto exchange.
According to Roubini, Binance is a “walking timebomb” because it has been banned in the UK and is the subject of ongoing investigations by the US Department of Justice.
“Unfortunately, this is an ecosystem that is totally corrupt. I think this is a lesson from the last few weeks, and I think these people should be out of here. I can’t believe [Zhao] and Binance has a license to operate in the UAE.”
In the midst of Sam Bankman-Fried’s empire’s collapse, Binance has played an unusual role. Zhao first discussed saving FTX with his rival, but as the company’s financial situation came under greater inspection, the arrangement collapsed before FTX filed for bankruptcy.
Then, Binance spearheaded a trend to give proof-of-reserves of cryptocurrency asset holdings, which was adopted by a number of well-known exchanges. The exchange has also established an industry recovery fund with the goal of aiding projects and exchanges with liquidity problems financially.
In 2022, the crypto exchange received regulatory licenses from a number of nations, with Dubai granting the go light in September 2022. In March 2022, the exchange received regulatory approval to start providing services in Bahrain.
