Binance has received preliminary approval to operate in Abu Dhabi

"IPA is a fully - regulated provider of virtual asset services that CoinA has positioned itself as, located in an internationally recognized and well-regulated financial center."

ADGM also stated that it intends to grant similar regulatory licenses to local and global crypto businesses to further establish Abu Dhabi as a "fast-growing virtual asset hub and digital economy."

ADGM CEO Dhaher bin Dhaher also applauded the move and expressed his willingness to help Cryptocurrency get a firm foothold in Abu Dhabi.

In addition to Cryptocurrency, the famous cryptocurrency exchange FTX has previously been licensed to operate in Dubai, the second largest city in the UAE after Abu Dhabi.

ADGM released a consultation paper on March 22 proposing to allow ADGM-licensed businesses to support irreplaceable token (NFT) transactions within the jurisdiction.

The Financial Services Regulatory Authority (FSRA), the primary regulator in the Free Zone, refers to NFT as intellectual property in the ADGM, rather than a "defined investment or financial instrument" consultation paper.

However, allowing NFT transactions certainly requires regulated firms to comply with the ADGM's anti-money laundering (AML) and sanctions rules.