Formerly on the fringes, crypto has not been subject to consistent regulation, which is unsurprising given its history. During the 2010s, and for much of the early 2020s, digital asset platforms like Binance scaled into massive, global enterprises.
Meanwhile, legal frameworks remained fragmented and inconsistent. Policy makers were still deciding whether to embrace or reject crypto, let alone begin creating regulatory regimes for it. However, thanks to large regulatory bodies creating clarity and institutional adoption, the days of regulatory uncertainty have long since passed.
Jurisdictions around the world are quickly catching up to reality, to crypto’s ongoing onboarding into the mainstream. Of course, some jurisdictions have made greater progress in this area than others. A key example is Abu Dhabi Global Market (ADGM), which is supervised by Abu Dhabi’s FSRA.
Earlier this year, this regulatory body quietly demonstrated a prime example of a workable end state for cryptocurrency regulation. How? By placing the world’s largest cryptocurrency platform, Binance, under live regulatory supervision.
On January 5, 2026, Binance’s platform fully transitioned to operate under the ADGM regulatory framework. Effective as of that date, the new Terms of Use, clearing arrangements, and custody responsibilities took effect. The transition also entailed a complex restructuring of Binance’s singular platform.
Instead of being regulated as one entity, Binance in effect became three separate entities, all licensed by ADGM and regulated by the FSRA:
- Nest Exchange Limited: a Recognized Exchange for spot and derivatives trading.
- Nest Clearing and Custody: a Recognized Clearing House, handling custody and settlement, as well as serving as a counterparty for on-exchange derivatives.
- Nest Trading: a broker-dealer for off-exchange and principal-based trading activities.
By separating its activities into three discrete entities, the company now establishes clear lines of responsibility, risk management, and accountability which is precisely the structure regulators expect in mature capital markets. While this level of oversight introduces additional operational rigor, it also aligns the platform with the same standards applied to global exchanges, clearinghouses, and broker-dealers.
Embracing this framework strengthens Binance’s standing as an industry leader in security and compliance, while reinforcing confidence among regulators, institutions, and retail users alike. In practice, this structure is not a constraint on growth, but a prerequisite for earning the trust required to scale responsibly within the global system.
As Binance Co-CEO Richard Teng stated in the company’s State of the Blockchain: 2025 Year in Review report, “The ADGM license crowns years of work to meet some of the world’s most demanding regulatory standards, and arriving within days of the moment we crossed 300 million registered users shows that scale and trust need not be in tension.”
The FSRA’s regulatory framework differs from others cropping up around the world in one key way. Rather than focusing on what’s allowed and what’s not, it takes a structural-first approach that mirrors traditional market frameworks and regulations, applying them to digital assets.
That is, its framework accounts for how markets function, making it easier for regulators to oversee it as they do tradfi markets. Instead of getting into the weeds on topics like token taxonomy, this framework focuses on what matters most for trust and security: counterparty risk, client assets, and accountability in the event of a default.
Besides being a framework more familiar to regulators, the FSRA’s approach was successfully implemented without impacting existing operations. Accounts, balances, and trading functionality remained unchanged throughout the transition.
Tight on structure while flexible on execution, the FSRA has created a blueprint that keeps its hands off progress and innovation while providing the regulatory assurance institutional players are looking for when selecting a service provider. As a result, the FSRA framework offers a clear, working reference for other regulators assessing how to structure crypto markets without disrupting existing operations.
Binance’s Abu Dhabi Global Market (ADGM) license is just one of many regulatory credentials in its possession, yet it may be the most significant in terms of crypto regulation moving forward. (Source: Binance State of the Blockchain: 2025 Year In Review)
Binance’s ADGM license may be one of many in its portfolio, but in terms of its impact on the future of crypto regulation, it is undoubtedly the most significant
Regulatory frameworks in the U.S., Europe, and Asia have been established or proposed for debate, but their rollout remains pending. Other jurisdictions remain further behind in terms of regulatory progress.
However, given how quickly the FSRA’s standards are becoming the most substantive in facilitating crypto’s integration into the mainstream system, these jurisdictions may return to the drawing board and implement frameworks similar to this approach.
Source: https://zycrypto.com/why-fsras-rulebook-may-become-the-de-facto-global-standard-for-digital-assets/
