Binance manages Middle East licensing and regional compliance shifts

Middle East regulatory progress

Binance operates through three distinct companies in Abu Dhabi Global Market following its January 5, 2026, authorization from the Financial Services Regulatory Authority. The exchange will operate under ADGM’s detailed digital-asset rules, splitting activities into separate licensed entities, which includes Nest Exchange Services Limited for spot and derivatives, Nest Clearing and Custody Limited for settlement, and Nest Trading Limited for brokerage and over-the-counter services. I find the separation of these functions into distinct units a logical step toward the stability found in traditional finance. This structure follows the company obtaining an operational minimal viable product license from Dubai’s Virtual Asset Regulatory Authority. This Dubai license allows Binance to convert virtual assets to fiat and hold customer funds in local bank accounts. I note that this registration is the third of four steps toward full regulation in the area. Richard Teng, who helped grow Abu Dhabi Global Market to 150 financial institutions, leads the company. The division of labor between the Nest entities aims to reduce risks seen in recent industry failures. Nest Exchange Services Limited runs the core trading platform, including spot and derivatives markets, while Nest Clearing and Custody Limited handles clearing and the safeguarding of user assets. Nest Trading Limited oversees brokerage and off-exchange services, such as over-the-counter trades and conversion products.

US settlement and leadership

The $4.3 billion settlement with US authorities weighs on the exchange. This sum includes a $2.5 billion forfeiture and a $1.8 billion penalty. Richard Teng, who previously led Abu Dhabi Global Market, manages the company after Changpeng Zhao resigned following a guilty plea to violating the Bank Secrecy Act. US agencies require a five-year compliance monitor for Binance. You already know that regulatory pressure affects every major exchange. I see the compliance monitor as a tool that helps institutional users approach the platform. While Teng mentions Paris as a possible headquarters, he refuses to name a permanent global base. The settlement followed allegations that Binance failed to comply with the Bank Secrecy Act and allowed transactions violating US sanctions. Zhao, who was released on a $175 million bond, faces pending sentencing. The DOJ alleged that Zhao prioritized Binance’s growth over compliance with US law. The board, which includes Teng, consists primarily of company insiders. Does the lack of a fixed headquarters hinder the company’s ability to satisfy various international regulators?

Regional compliance and Thailand expansion

Binance handles different regulatory demands across the globe. In Europe, the platform delists non-MiCA compliant stablecoins like Tether’s USDT and Dai to comply with EU rules. MiCA-compliant stablecoins like USDC and Eurite remain available to users. Users can still hold and withdraw these tokens, but they cannot use them for other products or services on the platform. The exchange also removed 12 privacy tokens, including Zcash, from markets in Spain, France, Poland, and Italy. This removal follows concerns about the vague language of the Markets in Crypto-Assets regulation. Gulf Binance obtained approval from Thailand’s Securities and Exchange Commission to start operations. This partnership with Sarath Ratanavadi’s Gulf Energy allows the exchange to provide digital asset brokerage and exchange services using Thai baht trading pairs. The venture, which Binance and Gulf Innova formed, obtained licenses from Thailand’s Ministry of Finance in May 2023. This exchange also partnered with Binance Kazakhstan for brokerage services under the supervision of Thailand’s SEC. The platform initially launched as an invitation-only exchange.