World’s largest cryptocurrency exchange by trading volume, Binance has secured full authorization from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate its platform under the Abu Dhabi framework. The exchange confirmed the development in a blog post on Monday, noting that the license grants it a new level of credibility and seamless access across multiple markets.
Notably, the approval includes three licensed entities: an exchange, a bearing house, and a broker-dealer. These three entities will operate distinctly, performing trading, custody, settlement, and off-exchange activities, mirroring traditional financial-market infrastructure.
Binance noted that the license from FSRA of ADGM grants them a new level of credibility, and seamless access across multiple markets, extending their reach beyond the UAE. It added that the license further cements the exchange position at the forefront of regulatory progress in digital finance.
Binance added that operating under the Abu Dhabi gold standard framework allows it to raise the bar higher for user protection, governance, market integrity, and operational resilience. Similarly, the exchange added that its users will also benefit from one of the strongest consumer-protection regimes in the world.
Binance shares more details on the three entities
As earlier mentioned, Binance will operate through three distinct licensed entities in order for it to render its services fully, and meet regulatory standards. The first licensed entity is Nest Services Limited, which is soon to be renamed as Nest Exchange Limited. As revealed, this entity, approved as a Recognised Investment Exchange (RIE) will operate as a Multilateral Trading Facility. In addition to this, it will also operate the platform’s on-exchange activities including spot and derivatives trading.
The second platform is the Nest Clearing and Custody Limited (approved as the Recognized Clearing House RCH). It wields permission to provide custody and CSD services. As revealed, this entity will oversee clearing, settlement, and secure custody of digital assets, ensuring the highest standards of operational resilience, segregation of responsibilities, and asset protection.
The third entity, BCI Limited, soon to be renamed Nest Trading Limited has been approved as a Broker-Dealer. It has permissions to deal in investments, arrange deals in investments, manage assets, arrange custody, and provide money services. It will also deliver Binance off-exchange offerings, including OTC services, conversion, and principal-based activities.
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