Binance looks set to continue expanding across the Middle East. Indeed, Changpeng Zhao’s platform has just received an agreement in principle to offer its services in Abu Dhabi, with a view to later expanding across the entire MENA region.
Binance on track to operate in Abu Dhabi
After obtaining a license to operate in Dubai and Bahrain, the Binance platform seems set to expand in the Persian Gulf. Indeed, the latter has announced that it has just obtained an agreement in principle to offer its services in Abu Dhabi, the capital of the United Arab Emirates
@binance, one of the world’s leading blockchain and cryptocurrency platforms, received an IPA from the ADGM Financial Services Regulator Authority. pic.twitter.com/jhHenzaahE
– Abu Dhabi Global Market (@ADGlobalMarket) April 10, 2022
The agreement in principle was issued by the Abu Dhabi Global Market (ADGM), the body that operates as the regulator of digital asset trading in Abu Dhabi. Indeed, since 2018, the ADGM has been able to issue licences relating to cryptocurrency exchanges.
However, according to Richard Teng, Binance’s head of the Middle East, the company has yet to complete the application process for approval, so this is only the first step. Should Binance be successful in obtaining its licence, it would then be able to offer its services to all its clients in North Africa and the Middle East through its subsidiary Binance (AD) Ltd.
The ADGM has recognised Binance’s efforts to develop as a regulated platform worldwide:
This agreement in principle is part of Binance’s plans to establish itself as a fully regulated virtual asset provider in a well regulated, internationally recognised financial centre.
The UAE, a top destination for cryptocurrencies
The UAE appears to be a strategic destination for cryptocurrency exchange platforms, as in addition to its license obtained in Dubai last month, Binance also said it would like to implement a dedicated blockchain technology hub directly within the Dubai World Trade Center.
At the same time, Changpeng Zhao, Binance’s CEO, said that Dubai could be a prime base for its platform, and that it could even be the city chosen for its future headquarters.
However, according to Richard Teng, Binance’s expansion in the Arab world will not stop there:
“We are looking forward to working with the Arab world.
We look forward to working closely with ADGM and other key players in Abu Dhabi to further roll out our world-class offerings and services across the MENA region and beyond.
The UAE had expressed its intention to attract the biggest companies specialising in cryptocurrencies and fintech in general, and it seems to be well on its way.
Indeed, Binance is far from an isolated case, as Sam Bankman-Fried’s platform FTX also announced last month that it had received a digital assets licence in Dubai and was also planning to set up a regional headquarters there. The Bybit exchange, which has over 5 million registered users, has also received an agreement in principle to operate in Dubai.
The digital economy currently accounts for 4.3% of the UAE’s GDP, or about $27.2 billion, according to the Dubai government.
