Binance has obtained permission from Abu Dhabi Global Markets (ADGM), the Abu Dhabi Special Economic Zone for Finance, to operate under a comprehensive exchange, clearing and brokerage framework, according to a press release from Binance.
The approval divides Binance’s business into three regulated components that mirror a traditional market stack in a traditional financial exchange. Binance’s ADGM presence will be organized under three locally incorporated entities under the Nest brand, a regulatory requirement that allows the Financial Services Regulatory Authority to oversee each function separately.
Nest Exchange has been licensed as a recognized investment exchange to operate spot and derivatives trading. Nest Clearing and Custody has been authorized as a recognized clearing house with additional custody and CSD authorizations, giving the regulator oversight of clearing, settlement and asset protection. Nest Trading has been licensed as a broker covering off-exchange and OTC activities.
Although structured under the Nest brand, all three entities are controlled by Binance and serve as the licensed infrastructure through which Binance.com will operate in Abu Dhabi, aligning the platform with market structure standards that regulators are pushing global exchanges to adopt.
Richard Teng, Co-CEO of Binance, said the framework reflects a commitment to “compliance, transparency and user protection”, while His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, said Binance’s arrival highlights Abu Dhabi’s role as a “leading international hub for innovation, sustainable growth and the future of finance”.
Binance and ADGM did not respond to a request for comment from CoinDesk on the possibility of moving its global headquarters to Abu Dhabi.
Binance has been looking for a jurisdiction to set up shop for some time, with Teng telling CoinDesk in 2024 that the process would take some time and that the company needed to be “thoughtful” about it.
