Amid The FTX Crisis, Binance Receives an FSP License in Abu Dhabi
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has awarded Binance the Financial Services Permission (FSP) status. As a result, Binance, the world’s largest cryptocurrency exchange, is set to begin offering custody services in ADGM.
Binance’s Plans to Expands into The Middle East
Binance has gotten the green light to offer custody services to business clients following the license terms. Notably, Binance had earlier received an In-Principle Approval (IPA) in April 2022. In addition, the ADGM regulator has also approved Binance as a virtual asset broker within the region.
Ahmed Jasim Al Zaabi serves as the head of ADGM. When talking about the potential for granting Binance a license, Al Zaabi stated they are eager to support Binance’s initiatives.
Binance’s Middle East and North Africa regional head discussed the company’s plans to expand into the Middle East. The statement stressed the significance of public-private cooperation.
FSRA and ADGM released their guiding principles for regulating and overseeing cryptocurrencies in September. However, the principles conform with international norms for preventing the financing of terrorists and illegal activities such as money laundering.
Guiding Principles Of FSRA
The regulator formulated five guiding principles and published them on the ADGM website.
- The following are the guidelines:
- A system of regulations that is acknowledged globally.
- Flexible Market-focused laws.
- An appropriate and risk-focused method.
- Coexistence and shared accountability.
- Delivering services of the highest caliber.
The regulatory body intends to collaborate with market participants in the future “frequently but officially.” Binance has recently set its sights on 2022 expansion through a custodial license in Abu Dhabi. Changpeng Zhao (CZ) serves as the head of Binance.
Regarding the FTX situation, CZ said that Binance is establishing a fund to support meaningful projects experiencing a liquidity issue.According to CZ, the goal of this effort is to lessen the harmful consequences of FTX that are now having cascading repercussions.
The cryptocurrency exchange platform’s presence in Brazil has gained two additional offices. Binance has also received licenses in New Zealand and Kazakhstan.