Binance announced today that it has received full regulatory authorization from Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). Under the approval, Binance will run its global platform under a formal, internationally recognized regulatory framework — transitioning operations into three newly-licensed ADGM entities.
From January 6, 2026, all Binance services will be provided through:
- Nest Exchange Services Limited — a Recognised Investment Exchange (RIE), responsible for on-exchange activities including spot and derivatives trading.
- Nest Clearing and Custody Limited — a Recognised Clearing House (RCH), responsible for clearing, settlement, central counterparty services, and custody of user digital assets.
- Nest Trading Limited — a Broker-Dealer handling off-exchange services such as over-the-counter (OTC) trading, conversion, and other principal-based services.
What This Means — Regulatory Clarity & Institutional-Grade Oversight
According to Binance’s announcement, the new structure is designed to reflect the kind of regulatory segmentation found in traditional financial markets — separating exchange, custody/clearing, and brokerage/dealer functions. This approach aims to enhance risk management, transparency, and user protection under ADGM’s regulatory framework.
Under the new arrangement:
- Existing user credentials (UID, login, order history, balances) will remain intact and unaffected.
- The relevant ADGM-licensed entity will become the legal counterparty for the specific service a user uses (e.g., trading, custody, OTC).
- Data-controller status will shift to the licensed entity providing the service, potentially strengthening data governance and privacy under the updated terms of use and privacy notice.
Binance describes the move as a “landmark regulatory achievement” and a demonstration of its commitment to building a “trusted, transparent, and resilient” global digital-asset platform under international regulatory standards.
Background — From In-Principle Approvals to Full Authorization
The latest approval builds on earlier regulatory steps by Binance with ADGM’s FSRA. In April 2022, Binance had received an In-Principle Approval (IPA) for a Financial Services Permission (FSP), allowing its virtual-asset brokerage operations under limited conditions.
In November 2022, Binance secured a formal FSP to provide custodial services to professional clients under ADGM’s regulatory framework.
However, until now, Binance had not obtained a full, broad licence to operate as a globally regulated digital-asset exchange under ADGM. The new decision authorizes its entire global platform, making it one of the first major crypto exchanges to be globally licensed under a top-tier financial jurisdiction.
Market & Industry Implications
- Legitimacy & Institutional Confidence: The ADGM licence could enhance confidence among institutional investors, enterprises, and regulated financial players — helping bridge traditional finance and crypto markets under a transparent, compliance-first framework.
- Regulatory Precedent: As one of the largest crypto exchanges globally, Binance’s adoption of a regulated, multi-entity structure might set a template that other exchanges follow — promoting better regulatory clarity in the broader crypto industry.
- Global Access Under Regulation: The move could solidify ADGM — and by extension Abu Dhabi — as a major global hub for regulated crypto activity, attracting further investment and talent in digital assets and Web3.
Next Steps & What Users Should Know
- The transition to ADGM-licensed entities will be effective from 6 January 2026 (08:00 UTC).
- Binance users will need to re-accept the updated Terms of Use and Privacy Notice — continuing use will be considered as acceptance.
- Functionality, user access, balances, order history, and ongoing trades should remain unchanged, though the legal “provider” will shift depending on service (exchange, custody/clearing, or OTC/broker).
Bottom Line
With its full regulatory clearance from ADGM’s FSRA and a restructured operational model under three dedicated ADGM-licensed entities, Binance is positioning itself as a regulated global crypto-asset exchange. The transition could mark a new phase in the crypto industry — where scale, global reach, and regulatory compliance are no longer mutually exclusive, but part of a unified blueprint for long-term growth.
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