In a landmark decision that reinforces Abu Dhabi’s position as a leading global hub for digital assets, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has granted Binance, the world’s largest cryptocurrency exchange, a comprehensive license for its global platform.
The approval marks a global first, setting a new gold standard for the regulation of digital asset ecosystems worldwide.
Subject to final operational preparations, Binance.com is set to commence its ADGM-regulated activities on January 5, 2026. This milestone not only offers the exchange credibility across multiple markets but also signals a new era of trust and compliance for the broader crypto industry.
A New Standard in Digital Asset Regulation
Under the stringent requirements of ADGM’s internationally recognized framework, Binance will operate its global platform through three distinct and independently licensed entities. This structure, which mirrors the separation of duties in traditional capital markets, is designed to enhance market integrity and protect consumers by distributing systemic risk.
The three entities are:
- Nest Services Limited (to be renamed Nest Exchange Limited): Approved as a Recognised Investment Exchange (RIE), this entity will operate the Multilateral Trading Facility, overseeing all on-exchange activities like spot and derivatives trading.
- Nest Clearing and Custody Limited: Approved as a Recognised Clearing House (RCH), it will manage the clearing, settlement, and secure custody of all digital assets, ensuring robust asset protection and operational resilience.
- BCI Limited (to be renamed Nest Trading Limited): Licensed as a Broker-Dealer, this entity will handle all off-exchange services, including over-the-counter (OTC) trading, conversion services, and other principal-based activities.
Unlocking Institutional and Sovereign Capital
This innovative three-pillar model directly addresses long-standing concerns from institutional and sovereign investors regarding risk concentration, asset custody, and transparency in the crypto market. By separating the functions of trading, clearing, and brokerage, the ADGM framework creates an auditable and regulated financial stack that aligns digital assets with the standards of traditional equities and futures markets.
The enhanced regulatory clarity and reduced operational risk are expected to lower the barrier for participation from major financial players like sovereign wealth funds, pension funds, and banks, potentially unlocking significant new waves of capital into the digital asset ecosystem.
A Commitment to Global Compliance
Richard Teng, Co-CEO of Binance, commented on the achievement, stating, “Achieving regulatory status through ADGM’s respected framework reflects our deep commitment to compliance, transparency, and user protection. This license provides regulatory clarity and legitimacy, enabling Binance to support its global operations from ADGM.”
Teng added, “This regulatory foundation offers our users peace of mind knowing Binance operates under a globally recognised, gold standard framework.”
His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, welcomed the move. “We are pleased to welcome Binance, a key global player in digital assets and financial innovation, to ADGM. Their presence underscores Abu Dhabi’s standing as a leading international hub for innovation, sustainable growth, and the future of finance.”
About Binance
Binance is a leading global blockchain ecosystem behind the world’s largest cryptocurrency exchange by trading volume and registered users. Binance is trusted by more than 300 million people in 100+ countries for its industry-leading security, transparency, trading engine speed, protections for investors, and unmatched portfolio of digital asset products and offerings from trading and finance to education, research, social good, payments, institutional services, and Web3 features. Binance is devoted to building an inclusive crypto ecosystem to increase the freedom of money and financial access for people around the world with crypto as the fundamental means.
Source: Zawya
