The United Arab Emirates has granted a license for financial services to Binance
2022.11.16 09:21
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The United Arab Emirates has granted a license for financial services to Binance
Budrigannews.com – The Abu Dhabi regulator of Global Markets (ADGM) and Financial Services has allowed the Binance cryptocurrency exchange to provide services in the region.
The official announcement of the financial center in the UAE capital is that Binance will provide crypto storage services to professional clients after meeting the requirements of the financial services permit.
The news came after Binance founder and CEO Changpeng Zhao attended the Abu Dhabi Financial Week. Zhao appeared on stage with Galaxy Digital CEO and investor Mike Novogratz at the event, having a wide-ranging conversation that touched on the aftermath of FTX’s ongoing bankruptcy.
Binance was based in Abu Dhabi after receiving general approval from ADGM in 2022/4. This allows the exchange to operate as a stockbroker for cryptocurrencies and digital assets.
Related: FTX debacle prompts Nansen to take stock of major Chain Holdings stock exchange
Binance plans to start offering exchange services to customers in Abu Dhabi, but this announcement has received significant feedback. Chief among them was an economist and cryptocurrency expert who made critical comments about the regulatory powers granted to Binance at another panel at Abu Dhabi Financial Week.
“This is a completely decaying ecosystem… I can’t believe @Cz_Binance has a license to operate in the UAE,” @Nouriel told CNBC’s @dan_murphy on stage at Abu Dhabi Financial Week. pic.twitter.com/3BGEMfx7zc
Roubini argued that Binance is banned in the UK and that an ongoing investigation by the US Department of Justice suggests that the exchange is a “walking time bomb.”
“Unfortunately, this is an ecosystem that is completely decaying. I think this is a lesson from the last few weeks and I think these people should get out of here. I can’t believe that [Zhao] and Binance have a license to do business in the UAE.”
Binance played an interesting role in the implosion of the FTX Empire by Sam Bankman-Fried. Zhao held the first meeting with his competitors to rescue FTX, but detailed scrutiny of the company’s finances caused the deal to fall through before FTX filed for bankruptcy.
Later, Binance led a movement followed by a number of prominent exchanges to provide evidence of the reserves of crypto asset holdings. The exchange has also established an industry recovery fund aimed at providing financial support to exchanges and projects facing liquidity problems.
Binance has been approved by many national regulators in 2022, with Dubai going live in 2022/9. This followed an exchange that received regulatory clearance to provide services in Bahrain in 2022.
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