Binance has become the first global cryptocurrency exchange to obtain a comprehensive license from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This places the platform under complete regulatory oversight worldwide.
The approval was announced on December 8, 2025, and includes exchange operations, clearing, custody, and brokerage services. This aligns Binance's structure with traditional financial market supervision.
Binance secures groundbreaking FSRA license…operational split management
This milestone signifies a significant shift in how large cryptocurrency platforms integrate with institutional regulation. Binance will begin regulated operations in ADGM from January 5, 2026.
With over 300 million users worldwide and more than $125 trillion in cumulative trading volume, Binance has established itself as one of the most strictly regulated digital asset platforms in the world.
Through FSRA approval, Binance will operate through three independent regulatory entities:
Nest Service Limited: (soon to be renamed Nest Exchange Limited) will act as a recognized investment exchange handling spot and derivative trading.
Nest Clearing and Custody Limited: will oversee clearing, settlement, and custody with approval from the clearing house.
BCI Limited: (soon to be renamed Nest Trading Limited) will operate as a broker-dealer handling OTC transactions and conversions and other unlisted activities.
This separation reflects traditional finance (TradFi) market infrastructure. It addresses long-standing concerns such as concentrated risk, transparency, and conflicts of interest in the cryptocurrency market.
The ADGM framework structurally separates trading, custody, and brokerage to enhance clear accountability and consumer protection.
Binance co-CEO Richard Teng described this approval as a significant moment for the exchange and the industry as a whole.
"This approval is a significant milestone for Binance. We are the first global exchange to receive comprehensive regulatory approval from FSRA ADGM, ensuring that our global operations and liquidity are fully supervised," Teng said. "Obtaining the full FSRA license reflects the strength of our foundation and our commitment to becoming the most trustworthy and compliant global exchange."
Binance also describes this approval as a 'turning point for the industry,' raising standards for global regulation, security, and institutional trust.
ADGM, enhancing its role as a global cryptocurrency hub
Abu Dhabi Global Market is playing a crucial role in positioning the UAE as a hub for cryptocurrency and blockchain adoption. Supportive regulatory frameworks, streamlined processes, and innovation-focused approaches have attracted key industry players, including infrastructure companies, layer-1 networks, and institutional service providers.
The regulatory momentum at ADGM extends beyond exchanges. On November 27, FSRA officially approved Ripple's USD-based stablecoin RLUSD for regulated institutional use within ADGM, unlocking compliance applications across lending, settlement, and brokerage platforms.
The approval highlights that regulators are pushing for the establishment of a fully regulated digital asset and stablecoin ecosystem.
Industry observers say Binance's license sends a strong signal to the institutional market. Cryptocurrency commentator Muhammad Azhar described this approval as a game changer for the Binance exchange.
The complete set of FSRA licenses represents a serious long-term commitment to compliance. This can accelerate mass adoption as the exchange aims for 1 billion users.
Binance's ADGM approval authority can now serve as a blueprint for other major exchanges seeking institutional legitimacy on a large scale.
The regulatory model of the three entities directly addresses many structural weaknesses revealed during past failures in the cryptocurrency market.
Binance's submission for full FSRA oversight represents a strategic shift towards integrating cryptocurrency infrastructure within the existing financial system, as ADGM provides regulatory clarity, global recognition, and enforcement standards comparable to TradFi.
Binance's ADGM framework can shape the design of future global cryptocurrency regulation and the entry of institutional capital into the digital asset economy.