Binance Holdings Ltd., the world’s largest cryptocurrency exchange by trading volume, has received approval to operate as a broker of digital assets in the Abu Dhabi Global Market.
Its cryptocurrency coin, BNB, powers the Binance ecosystem.
The company has been looking to enter the Middle East market. In March, the crypto exchange launched a recruitment drive to fill around 100 positions in the UAE.
Binance announced receiving the approval on Sunday. It is also expected to help the local government formulate the country’s new virtual asset regulations.
In March, Dubai, one of the seven emirates and a major financial hub, created the Virtual Asset Regulatory Authority (VARA) to supervise the sector. Lately, many countries have put restrictions on crypto companies due to inadequate regulations or flouting KYC norms.
For instance, the UK and Singapore restricted some of Binance’s operations last year.
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The UAE’s approval is a major boost to the company. However, the exchange is yet to complete the application process, said Binance’s Middle East and North Africa head Richard Teng.
After receiving a full license, the exchange can trade in crypto products and services in Abu Dhabi and the Middle East and North Africa (MENA) region through its subsidiary, Binance (AD) Ltd. It will open up an opportunity to expand its presence in the area.
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Which other companies received UAE approval?
The UAE has been pushing for regulations to attract new businesses and develop the virtual asset sector. It aims to become a major global center for the crypto sector.
The UAE based crypto exchange, BitOasis, was the first to receive a VASP license in the country after securing a provisional approval from the regulatory authority. It was founded in 2015.
In March, crypto exchange FTX received a license to work as a virtual asset service provider (VASP) in Dubai. Bybit and Crypto.com are also looking forward to starting operations there.
Last month, Binance received a license to operate in Dubai.
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Bottom line:
Although the UAE approval has come as a major boost for Binance, the Paris based global money-laundering watchdog Financial Action Task Force (FATF) has put the country on the ‘grey’ list, which necessitates countries to do more against financial crimes. However, investors should carefully analyze cryptos and the broader market before investing in digital assets.
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