Binance, the world’s largest cryptocurrency exchange by trading volume and users, has become the first global exchange to secure a comprehensive license under the regulatory regime of Abu Dhabi Global Market (ADGM).
The license, granted by ADGM’s regulatory arm, the Financial Services Regulatory Authority (FSRA), establishes a new benchmark for compliance, oversight and institutional-grade governance in the crypto space.
The approval encompasses three separately regulated entities within ADGM, covering all essential aspects of a modern financial-market infrastructure: exchange operations, clearing and custody, and brokerage services.
This regulatory endorsement reflects Binance’s commitment to a fully compliant, transparent, and globally regulated digital asset ecosystem.
A three-entity structure mirroring traditional finance. Under the new licensing framework, Binance will operate through:
Nest Exchange Limited (formerly “Nest Services Limited”): approved as a Recognized Investment Exchange (RIE), this entity will oversee on-exchange trading activities, including spot and derivatives products.
Nest Clearing and Custody Limited: approved as a Recognized Clearing House (RCH), responsible for clearing, settlement, and secure custody of digital assets, ensuring robust operational resilience and asset protection.
Nest Trading Limited (formerly “BCI Limited”): approved as a Broker-Dealer, managing off-exchange offerings including over the counter (OTC) trading, conversion services, asset management, and money services.
This separation of functions; trading, custody, clearing and brokerage closely mirrors the infrastructure of regulated traditional financial markets, offering clarity and reducing operational risk. The move aligns with ADGM’s ambition to create a fully regulated, transparent environment for digital-asset firms.
In a statement, Binance’s Co-CEO Richard Teng said the FSRA license “reflects our deep commitment to compliance, transparency, and user protection.”
He added that operating under ADGM’s “gold-standard framework” gives users “peace of mind” while the global firm continues to leverage “talent and innovation worldwide.”
From the regulator’s perspective, the approval is a validation of ADGM’s regulatory model.
Ahmed Jasim Al Zaabi, Chairman of ADGM, said Binance’s presence underscores Abu Dhabi’s standing as a leading international hub for innovation and sustainable growth.
He expressed confidence that Binance’s operations within ADGM would contribute to a more innovative, inclusive and future-ready global financial sector.
ADGM has over recent years been refining its crypto-asset regulations to address the full spectrum of risks associated with digital-asset activities, including money laundering, custody, technology governance and investor protection.
Under the enhanced rules, virtual asset service providers must meet stringent requirements: custodians must hold significant base capital, multilateral trading facilities must maintain operational buffers, and certain types of risky tokens, such as privacy coins and algorithmic stable coins, remain prohibited.
These rigorous standards have positioned ADGM as one of the most institutionally comprehensive crypto regulators globally increasingly attractive for firms seeking legitimacy, regulatory clarity, and access to global markets.
According to the announcement, Binance intends to begin its ADGM-regulated operations on 5 January 2026, once final operational preparations are complete.
The company said the transition is regulatory in nature; user balances, credentials, order history, and trading features will remain intact, but services will be routed through the newly licensed entities to ensure compliance.
While headquartered in the United Arab Emirates, the implications of this license extend globally.
With over 300 million registered users and more than US$125 trillion in cumulative trading volume, Binance’s decision to anchor its global platform under ADGM could influence the standards under which cryptocurrency exchanges operate worldwide.
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