1 day ago
1754
Binance just shared new processes with its global users after it received its three new licenses in Abu Dhabi, UAE, within ADGM, noting that some products and services may no longer be available, and some products and services will be provided by its three separately licensed entities.
Interestingly, in its FAQ page, it notes that Binance is making this change because it is strengthening its regulatory framework and enhancing the oversight of the global platform.
As per the FAQ, “Becoming regulated in ADGM means that our services are provided by entities that meet clear regulatory standards, including rules on governance, risk management, and customer protection.”
The changes are effective immediately and include the implementation of regulatory, contractual, clearing, and custody changes. As per Binance, these are designed to provide greater clarity, oversight, and risk management across their operations.
As per the blog post, users may review the prior advance notice announcement dated 2025-12-08, which notes that under the new UAE ADGM regulatory structure, services on the platform are provided through three ADGM-licensed entities, each operating in accordance with its regulatory permissions, which structure mirrors established financial market infrastructures, with clear separation of responsibilities and strengthened risk controls.
The three licensed entities for which Binance received approval back in December by FSRA in ADGM are Nest Exchange Limited, which will offer services as an investment exchange, and Multilateral Trading Facility, responsible for all exchange activities, including spot and derivatives trading.
The second licensed entity, Nest Clearing and Custody Limited (formerly known as Binance (AD) Limited), will act as a Recognized Clearing House, with a stipulation to provide custody, responsible for clearing and settlement, acting as the central counterparty for on-exchange derivatives trades, and safeguarding user digital assets.
Finally, Nest Trading Limited (formerly known as BCI Limited) is a broker-dealer responsible for off-exchange activities and principal-based services (e.g., OTC trading, Convert, Earn).
How does this affect service providers and users
As per Binance, the contractual arrangements with users have been updated, and services that were once provided only by Nest Exchange Limited will now be provided by Nest Exchange Limited, Nest Clearing and Custody Limited, and Nest Trading Limited.
Binance noted, “The rights and obligations under the existing Terms of Use have now been novated to the relevant ADGM entities. This means that your contractual relationship now continues with the ADGM-regulated entities in respect of the services that they each provide.”
This means products used by Binance users have been updated in accordance with the specific service provider responsible for each product under the new structure.
This comes as Binance secured full regulatory authorization from ADGM’s Financial Services Regulatory Authority (FSRA) to operate Binance.com under a robust, globally recognized supervisory framework.
Binance notes that ADGM is one of the world’s most respected financial centers, known for its forward-thinking approach to digital-asset regulation. Operating under ADGM’s oversight allows them to bring even higher levels of clarity, protection, and accountability to global users.
The company noted, “This approval represents a major advancement for both Binance and the broader digital-asset industry as the space matures and integrates more deeply with global financial infrastructure.”
Data for each of the three licensed entities will be separated
There are also changes to data controllers. Starting from today, each of the three ADGM licensed entities will act as a separate data controller for the services they provide.
Binance adds, “As part of this transition, our Terms of Use, Privacy Notice, and related legal documentation have been updated and are now in effect, replacing the previous versions.
Binance Derivative transactions to be cleared on Nest Clearing and Custody Limited
Binance also announced that as of 2026-01-05 08:00 (UTC), users’ open positions for on-exchange derivative transactions are “given up” for clearing to Nest Clearing and Custody Limited, which acts as the central counterparty.
Nest Clearing and Custody Limited will also act as the custodian of user digital assets, subject to limited exceptions.
Exceptions include user assets that were frozen at the direction of authorities pursuant to court or agency freezing orders issued prior to 2026-01-05 08:00 (UTC) will remain held under Nest Exchange Limited. It also includes assets of Canadian-resident users whose accounts have been placed in withdrawal-only mode, which will continue to be held under Nest Exchange Limited until further notice.
Finally, Binance confirms that the new regulatory and legal structuring under the three licensed entities will not alter the way users interact with the platform. Users will continue to access their account using their existing UID and login credentials.
Users’ balances, order history, and trading functionality remain unaffected. Products and services remain available, except that they may now be provided by different regulated service providers under the new structure.
Moreover, users’ existing orders and positions will remain open and materially unchanged, except that they may be transferred to the relevant regulated service provider where applicable.
Interestingly, while Binance makes this announcement as a global one, the exchange, which is also licensed by Dubai’s VARA regulatory authority and SCA as well, did not mention any changes on that platform.
If you're reading this, you’re already ahead. Stay there with our newsletter.
English (US)