Binance Expands Its Regulatory Presence in Abu Dhabi, Strengthening its Position in the UAE

Binance has recently obtained three new licenses in Abu Dhabi, reinforcing its influence in one of the most ambitious digital asset hubs in the Middle East. This strategic move provides the exchange with a robust regulatory foundation as it aims to attract institutional investors.

Key Takeaways

Binance secured three new licenses in Abu Dhabi to strengthen its regulatory presence in the UAE.
The approvals cover exchange, clearing, and broker-dealer activities for its global platform.
The new framework includes Nest Exchange Limited, Nest Clearing and Custody Limited, and Nest Trading Limited.
These moves are part of Abu Dhabi's strategy to enhance its digital finance status using its oil wealth and sovereign funds.
Binance aims to restore trust with a robust compliance framework following a turbulent regulatory period.

Binance

The Financial Services Regulatory Authority of Abu Dhabi Global Market has permitted Binance.com to operate through three regulated entities, encompassing exchange, clearing, and broker-dealer activities.

These authorizations were granted during the Abu Dhabi Finance Week and apply to Binance’s global platform, not just a localized branch, which is crucial for professional traders who need to know where the exchange can legally operate.

Binance Develops a Multi-Entity Framework for Exchange and Trading Activities

The newly structured framework includes Nest Services Limited, which will be rebranded as Nest Exchange Limited. This entity has been approved as a recognized investment exchange, authorized to run a multilateral trading facility that will support Binance’s on-exchange activities, including spot and derivatives markets.

Additionally, Nest Clearing and Custody Limited has been approved as a recognized clearinghouse with specific permissions for custody and securities depository services. This entity will oversee the clearing, settlement, and safekeeping of digital assets.

A third entity, BCI Limited, which is set to become Nest Trading Limited, holds a broker-dealer license that covers dealing and arranging investments, asset management, custody services, and money services, including over-the-counter trading and currency conversion.

Binance Capitalizes on ADGM Framework to Enhance Compliance and Global Outreach

Binance has characterized this set of approvals as a comprehensive regulatory package for Binance.com—a first of its kind at a global level. The company believes these licenses provide a clearer pathway to enter various markets beyond the UAE and help position itself as a more reliable partner for institutions wary of loosely regulated trading venues after recent sector disruptions.

Richard Teng, Binance's co-chief executive and a former senior official at the Abu Dhabi Global Market, stated that navigating under the authority’s regulatory framework signifies a commitment to compliance, transparency, and user protection. He emphasized that the license enhances regulatory clarity, legitimizing Binance's operations in Abu Dhabi while enabling a decentralized operational model that taps into global talent.

Abu Dhabi's Strategic Move Towards Becoming a Digital Finance Hub

For Abu Dhabi, this agreement aligns with a broader initiative to transform its oil wealth and sovereign funds into sustained investments in digital assets and fintech. The emirate, which controls around $2 trillion in sovereign wealth, has increasingly expanded its involvement in the cryptocurrency space.

Notably, the Abu Dhabi Investment Council, an independent entity of Mubadala Investment, more than tripled its investment in BlackRock’s iShares Bitcoin Trust during the third quarter, increasing its holdings to nearly 8 million shares as of September 30, valued at approximately $518 million at that time.

Binance also has direct financial interests in the city. In March, the exchange secured a $2 billion investment from MGX, an AI-focused investor chaired by Sheikh Tahnoon bin Zayed Al Nahyan, a prominent figure in the emirate's financial and security landscape.

This backing and newly acquired licenses underline Abu Dhabi's view of Binance as an essential component of its digital finance ambitions.

Although Binance has not yet announced a global headquarters, Teng has mentioned the UAE as a highly attractive option. With the Abu Dhabi Global Market set to host Binance.com’s regulated activities starting January 5, 2026, the city remains a leading contender for a long-term operational base—especially as institutional clients increasingly seek reliable regulatory environments.

Binance Aims to Rebuild Trust Following a Challenging Period

These new approvals come after a tumultuous time for Binance regarding regulatory scrutiny. Founder Changpeng Zhao resigned as CEO in 2023 after admitting to violations of U.S. anti-money laundering laws.

The company settled a prolonged U.S. investigation by agreeing to pay over $4.3 billion. Zhao was pardoned by President Donald Trump in October 2023, lifting a significant legal burden for the former CEO; however, regulators and partners still expect Binance to demonstrate its capability to operate with stricter oversight.

Binance asserts it now has over 300 million registered users and has facilitated more than $125 trillion in cumulative trading volume. The company argues that adhering to Abu Dhabi's regulations will provide both retail and institutional users with increased confidence in oversight and consumer protection as it works toward its long-term goal of reaching 1 billion users.

As the regulatory landscape stabilizes, the leadership team is undergoing changes. Recently, Teng appointed co-founder Yi He as Binance’s new co-CEO, describing her as a pivotal figure since the exchange's inception and crediting her with shaping its user-focused culture and vision. Her official promotion indicates that Binance is committed to presenting a more organized leadership as it deepens its engagement with regulated markets.