Binance Gets Full FSRA Licensing; A Regulatory First in Abu Dhabi

By
Ritu Lavania
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Binance Gets Full FSRA Licensing; A Regulatory First in Abu Dhabi

What To Know:

  • Binance became the first global crypto exchange to secure complete digital-asset licenses in Abu Dhabi.
  • The exchange will run under a structure that separates trading, clearing, custody, and brokerage services into three distinct licensed entities.
  • Regulated operations begin January 2026 under one of the strictest frameworks.

Binance has become the first crypto exchange to receive a complete set of licenses from Abu Dhabi Global Market’s Financial Services Regulatory Authority, a move the platform describes as its most decisive regulatory breakthrough to date. The approval, announced publicly through Binance channels and confirmed on the company’s website, places the exchange under one of the most structured and closely monitored digital-asset rulebooks in operation.

Binance Secures Full Licensing Suite from Abu Dhabi

The authorization allows Binance.com to function as a fully regulated platform within Abu Dhabi’s financial centre. The exchange will run under a structure that separates trading, clearing, custody, and brokerage services into three distinct licensed entities. The system reflects institutional finance models, where exchanges, clearing houses, and broker-dealers remain independent for risk supervision and consumer protection. Binance executives say the regulation structure sets clearer operational lines, strengthens accountability, and introduces mechanisms traditionally associated with securities markets rather than retail crypto trading.

Nest Services Limited, pending a rename to Nest Exchange Limited, will operate the trading venue and its multilateral trading facility. All spot and derivatives activity will move through this entity, subject to exchange-level rules comparable to those applied to global equities and commodities platforms. Nest Clearing and Custody Limited, recognised as a clearing house, will handle the matching, settlement, and safekeeping of client assets. A third unit, BCI Limited, due to be renamed Nest Trading Limited, will hold a broker-dealer license and manage off-exchange trading, OTC services, conversions, and asset management permissions.

The company frames the approval as evidence of its long-term focus on compliance, user protection, and structural regulation. Richard Teng, Binance Co-CEO, said the license represents a step toward global credibility and legal clarity. According to him, operating within ADGM’s system provides confidence to users and institutions and demonstrates that the exchange meets international standards for governance, financial separation, and risk management. Teng also noted that the regulatory clearance is designed to be scalable across jurisdictions, positioning the exchange to expand more comfortably into markets that require rigorous authorization.

Abu Dhabi officials described the approval as part of the emirate’s wider push to position itself as a centre for digital finance. Ahmed Jasim Al Zaabi, Chairman of ADGM, stated that Binance’s entrance signals confidence in the region’s legal framework and its growing appeal to the industry’s largest players. He said the license aligns with the UAE’s strategy of building regulated crypto infrastructure backed by supervision, detailed operating rules, and compliance expectations suited to retail and institutional use.

Binance says users will gain from clearer safeguarding rules, stronger oversight of custody, and asset separation that mirrors regulated securities markets. Each business line will operate with specialised permissions instead of a single umbrella license, which the company says reduces concentration of responsibility and offers additional layers of surveillance and accountability. The exchange stressed that every operational segment, from order-matching to withdrawals, will fall under tailored regulatory requirements.

The platform plans to begin offering regulated services under the ADGM framework on January 5, 2026, following final internal setup and operational approvals. The company has published guidance for customers ahead of the transition, noting that access, product availability, and custody terms will remain consistent while operating standards rise under the new regime.

Binance reports more than 300 million registered users and $125 trillion in cumulative trading volume. Executives say the scale of its operations requires market structures that can withstand institutional demand, regulatory expectations, and cross-border integration. The firm has argued for several years that supervised digital-asset trading will form the next stage of market growth, and that frameworks like ADGM’s will help exchanges attain mainstream financial recognition.

Also Read: UAE’s New Law Brings DeFi, Web3, Stablecoins Under Central Bank Oversight