This morning, it was officially announced that Binance has received full authorization from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA), becoming the first cryptocurrency exchange to obtain a global license under this framework.
Binance finally has a solid backing base -- UAE, a sovereign state with full support, which is significant, and now we can build with peace of mind without concerns.
Long-time fans know that Binance has gone through a famous 'wandering' history since its establishment. In its early development stage, Binance attempted to set its headquarters in different countries multiple times, but often had to relocate or was expelled due to tightening regulations or inability to obtain licenses.
At that time, US stocks were trying to grab Binance's tail, and global governments held a skeptical attitude toward crypto, leading to @CZ once stating 'we Binance have no headquarters' 'completely decentralized'. It was quite uncomfortable to hear at the time, but I could understand it was also to avoid regulatory crackdowns.
Who would want to wander around if they could settle down? So I say this time the full compliance in the UAE is significant -- the wandering journey has ended.
~~~~~~~~~~~~~
I sorted out the timeline of Binance's various wanderings.
China (2017) —— Birthplace and first departure
• Attempt: Binance was established in Shanghai in July 2017.
• Reason for eviction: Regulatory ban.
• In September 2017, the Chinese government issued a severe 'Nine Four Ban' (banning ICOs and the operation of cryptocurrency exchanges).
• Result: On the eve of the ban taking effect, Binance urgently withdrew its servers and core team from China, starting a global wandering mode.
Japan (2017-2018) —— A brief safe haven
After leaving China, Binance moved most of its core personnel and operational center to Tokyo, Japan, trying to establish a foothold there.
• Reason for eviction: Warning for operating without a license.
• The Financial Services Agency of Japan (FSA) is very strict. In March 2018, the FSA issued a formal warning to Binance, pointing out that it was providing services to Japanese residents without registration. If it continued to operate unlicensed, it would face criminal charges.
• Result: To avoid legal risks, Binance was forced to announce its headquarters relocation from Japan.
(PS: Binance later re-entered the Japanese market in 2022 through the acquisition of a licensed exchange, but that's a later story, the headquarters cannot return.)
Malta (2018-2019) —— The shattered dream of the 'blockchain island'
After leaving Japan, Binance announced with great fanfare its headquarters relocation to Malta. The then Prime Minister of Malta was keen to position it as a 'blockchain island', welcoming crypto businesses. This was seen by outsiders as Binance's official global headquarters, and the photo of CZ in shorts with the Prime Minister is still fresh in memory.
• Reason for eviction: Regulatory clarification and disassociation.
• Although Binance claimed to call this home, in February 2020, the Malta Financial Services Authority (MFSA) suddenly issued a public statement clearly stating **'Binance is not authorized to operate in Malta'**, and that the agency does not regulate Binance.
Result: This is actually a regulatory 'eviction notice', and to this day I still do not understand where the pressure on Malta came from, and it lost the best opportunity for a small country to overtake.
Binance then no longer mentioned Malta as its headquarters and began to claim 'decentralized office, no headquarters'.
Singapore (2019-2021) —— Once the most promising destination
CZ had lived in Singapore for a long time, and Binance also invested a lot of resources there, with not only a large office but also actively applying for a license from the Monetary Authority of Singapore (MAS), trying to make it a de facto global center.
• Reason for eviction: Compliance standards not met.
• In 2021, as global regulations tightened, the Monetary Authority of Singapore placed Binance on the 'investor warning list' and imposed stringent requirements on its compliance (anti-money laundering, KYC, etc.).
• In December 2021, realizing it could not meet regulatory requirements, Binance withdrew its license application and announced the closure of its trading platform Binance.sg in Singapore.
Binance once again lost the opportunity to establish a regulated headquarters, and CZ subsequently left Singapore, turning toward the Middle East and Europe.
~~~~~~~~~~~~~~
This is both an opportunity for the UAE and Binance, which will ultimately benefit $BNB . Cheers～
