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Binance secures license to offer custodial services in the UAE

By:
on Nov 16, 2022
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  • Binance has been granted a Financial Services Permission (FSP) in Abu Dhabi.
  • The license will allow the leading global crypto platform to offer custodial services to professional clients.
  • Binance's latest regulatory nod comes at a time crypto is navigating the FTX implosion.

Binance, the world’s leading crypto exchange infrastructure and blockchain services provider, has secured regulatory approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi.

The Financial Services Permission (FSP) license will allow Binance to extend its custody services to professional clients in the United Arab Emirates and across the MENA region, according to a press release the Abu Dhabi Global Market (ADGM) published on Wednesday.

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Dominic Longman, senior executive officer of Binance Abu Dhabi said in a statement:

“Obtaining this license is a pivotal step in the growth of Binance in Abu Dhabi, and a reflection of the city’s progressive stance on virtual assets. We are excited to continue to strengthen our symbiotic relationship with ADGM and the city of Abu Dhabi and look forward to providing institutional investors with a secure and reliable platform for their virtual asset activities.”

Binance looks to expand despite FTX-related turmoil

Binance’s latest regulatory milestone is subject to meeting FSRA conditions for the FSP, the announcement stated.

But even as the exchange awaits the official nod from the UAE markets watchdog, this latest move illustrates the crypto exchange’s expansion efforts have not been dimmed by FTX’s implosion.

Binance had revealed its intention to rescue FTX early last week as it emerged the then Sam Bankman-Fried-led crypto platform was on its knees.

However, CZ’s company backed away from the nonbinding agreement as the scope of the rot at FTX, Alameda Research and other SBF-affiliated companies became clear. FTX eventually sunk into bankruptcy last Friday, amid reports of fraud and misuse of customer funds.

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