Breaking: Binance Gets FSP License In Abu Dhabi Amid FTX Crisis
Top cryptocurrency exchange Binance is all set to start its crypto custody services in the Abu Dhabi Global Market (ADGM). The Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market has granted Financial Services Permission (FSP) to the largest cryptocurrency in the world.
As per the license, Binance will be permitted to provide custody to professional clients if they meet the FSP’s standards as defined by the FSRA. Notably, Binance received In-Principle Approval (IPA) from the ADGM authority to operate as a broker-dealer in virtual assets in April 2022.
ADGM regulator aims to develop solution for web3
While talking about issuing a license to Binance, the Chairman of ADGM, Ahmed Jasim Al Zaabi, said “We look forward to supporting Binance’s operations and R&D in ADGM to develop solutions for the Web3.0 economy.”
Binance Regional head of MENA and Europe on expansion in the Middle east said “Working with the ADGM and FSRA has been a highly collaborative process that underscores the value of cooperation between our industry and the public sector.”
The FSRA and ADGM regulators released their guiding principles for cryptocurrency regulation and supervision in September. While the principles correspond to international anti-money laundering (AML) and counter-terrorism financing (CFT) standards.
The regulators developed five guiding principles on the official website of ADGM:
- Internationally Recognized Regulatory Framework,
- Dynamic and Market-Oriented Regulations,
- Risk-focused and Proportionate Approach, Cooperation and
- Shared Responsibility, and
- Delivering High Quality and Service.
Furthermore, the regulator plans to work with market participants on a “regular but informal” basis. Binance’s custodial licence in Abu Dhabi is the exchange’s most recent 2022 expansion push. On FTX crisis, CZ said “To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund to help projects who are otherwise strong but in a liquidity crisis.” The cryptocurrency exchange added two new offices in Brazil and gained licences in Kazakhstan and New Zealand.
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