Binance Secures 3 ADGM Licenses, BNB Hits $901 as Trading Surges

Binance has become the first crypto exchange to receive full regulatory approval from the financial regulators of Abu Dhabi...

Quick overview

  • Binance has received full regulatory approval from the Abu Dhabi Global Market, becoming the first crypto exchange to do so.
  • This approval allows Binance to operate with standard permissions similar to traditional financial markets, enhancing its credibility.
  • The exchange has split its operations in Abu Dhabi into three licensed entities to handle various trading and custody functions.
  • Following the news, Binance's native token BNB saw a price increase and a significant rise in trading volume, reflecting increased investor confidence.

Binance has become the first crypto exchange to receive full regulatory approval from the financial regulators of Abu Dhabi Global Market (ADGM). This news broke on December 8th and, in a big deal, lets the exchange operate with all the standard permissions you’d get in any traditional financial market.

This is a significant milestone for Binance and puts them out in front as the global leader in being a responsible and secure place for folks to put their crypto dollars. Co-CEO Richard Teng reckons having this sort of license on its books shows that Binance meets the highest industry standards for compliance, safety, and user protection.

Some of the key details about the licenses issued are

  • Three different licensed entities each handle different tasks.
  • The approval covers all the usual trading and off-exchange activities.
  • And overall, having all these regulations in line really brings Binance in line with the rest of the financial world.

This is a big deal for the industry because it shows that crypto exchanges can (and in this case, do) operate within a very robust regulatory framework. It builds trust with both big and small investors looking to get in on the action.

The Setup and Where Binance Calls Home

Binance has split up its operations in Abu Dhabi into three separate companies:

  • Nest Exchange Ltd handles all the spot and derivatives trading.
  • Nest Clearing and Custody Ltd is the one that does custody and all the central securities stuff.
  • Nest Trading handles OTC trades and other off-exchange activities.

While Binance hasn’t officially said Abu Dhabi will be its global HQ just yet, it’s clear that all the regulatory biz is making it a pretty good bet. Teng said something interesting – that global regulators are more interested in where an exchange is regulated than anything else – and this ADGM oversight is a massive factor in their plans.

The ADGM licenses are the latest in a long line of regulatory milestones for Binance – it follows on from the $2 billion investment from Abu Dhabi-based MGX in March, which took a bit of a stake in the company to get into the crypto game.

The BNB Price Reacts

And as you might guess, the news was pretty good for Binance’s native token, BNB. It shot up by 1% to $901.73 and traded between $872.89 and $908.65 over the past 24 hours. Trading volume went up by nearly 25% and it all looks like it’s bringing a whole lot more confidence from the investors.

  • In the first 4 hours after the licenses were announced, people opening BNB futures did so 1.5% more often than before.
  • 24-hour open interest for BNB futures is up to a whopping $1.4 billion.
  • And all that speculation is what pushed the price up in the short term.

The regulatory approval really adds to Binance’s credibility. It can now bring in even more big investor money – and it will all help to make the overall market liquidity a whole lot bigger. So yeah, a big day for crypto – and a big moment for Binance.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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