Binance has obtained authorization from Abu Dhabi Global Markets (ADGM), the financial special economic zone in Abu Dhabi, to function under a comprehensive framework encompassing exchange, clearing, and brokerage, as stated in a Binance press release.
This approval divides Binance’s operations into three regulated segments, reflecting a typical market structure found in traditional finance exchanges. Binance’s activities in ADGM will be organized through three locally established entities under the Nest brand, a regulatory necessity that enables the Financial Services Regulatory Authority to monitor each function independently.
The Nest Exchange has received a license as a Recognized Investment Exchange, permitting it to facilitate spot and derivatives trading. Nest Clearing and Custody has been authorized as a Recognized Clearing House, along with additional custody and Central Securities Depository (CSD) permissions, which afford the regulator oversight of clearing, settlement, and asset protection. Additionally, Nest Trading has been approved as a broker-dealer handling off-exchange and OTC transactions.
While operating under the Nest brand, all three entities remain under Binance’s control and act as the authorized infrastructure for Binance.com in Abu Dhabi, aligning the platform with the market-structure standards that regulators advocate for global exchanges.
Richard Teng, Binance’s co-CEO, mentioned that the framework represents a commitment to “compliance, transparency, and user protection,” whereas His Excellency Ahmed Jasim Al Zaabi, chairman of ADGM, highlighted that Binance’s introduction marks Abu Dhabi as a “leading international hub for innovation, sustainable growth, and the future of finance.”
Both Binance and ADGM did not respond to a CoinDesk inquiry regarding the possibility of relocating its global headquarters to Abu Dhabi.
Binance has been actively searching for a suitable jurisdiction to establish its base, with Teng informing CoinDesk in 2024 that this process would require time and that careful consideration was necessary.
