The largest exchange in the world has just taken a huge regulatory step. Binance has obtained the ADGM license from FSRA — a legal 'passport' that allows it to provide a full range of trading and custody services outside the UAE as well.
Binance has received a license from FSRA, confirming full compliance with international standards.
Three separate licenses for the companies controlling the exchange strengthen its global position.
What does the ADGM license give Binance and why is it such a breakthrough?
Binance, despite dominating globally in trading volume for years, does not have an official headquarters in any country. In the context of MiCA requirements or other local regulations, this has raised doubts — how will the company obtain licenses without subsidiaries?
FSRA, the financial regulator of Abu Dhabi, dispelled these concerns. It granted Binance three licenses — for Nest Exchange Limited, Nest Clearing and Custody Limited, and Nest Trading Limited. This means full, regulated operation of the exchange within the ADGM regulations.
ADGM operates under a common law system, which means its standards are recognized by many global regulators as proof of the highest compliance. It is not a 'legally global license', but in practice, it acts like a regulatory passport, opening the way to new markets with high legal requirements.
For Binance, this means:
– full regulation,
– greater investor trust,
– the ability to enter markets that have been 'closed' to CEXs without oversight,
– a strategic contrast to offshore exchanges.
Richard Teng called it a 'milestone' — and indeed it is the first case where a global exchange receives such broad approval from the FSRA.