License Reevaluation: Binance Retracts Abu Dhabi License Bid, Filed a Year Ago for Collective Investment Fund Management.
Binance, the prominent cryptocurrency exchange, has opted to withdraw its application for a licence in Abu Dhabi, reflecting its ongoing review of the global organizational framework amid increasing regulatory scrutiny.
The application, originally filed by Binance’s unit BV Investment Management a year ago, was officially withdrawn on November 7, as confirmed by a spokesperson for Binance. The intended licence, had it been granted, would have empowered the firm to oversee a collective investment fund, according to information available on the regulator’s website.
In response to queries, the Binance spokesperson stated, “When assessing our global licensing needs, we decided this application was not necessary.” The Financial Service Regulatory Authority (FSRA) of Abu Dhabi Global Market, where the application was submitted, refrained from offering comments on the withdrawal.
Binance founder Changpeng Zhao’s recent resignation as CEO, following a guilty plea related to violations of US anti-money laundering laws, coupled with the exchange’s agreement to settle a U.S. investigation by paying over $4.3 billion, marked a significant development.
However, the Binance spokesperson clarified that the decision to retract the licence application is “unrelated” to the recent settlement in the United States, reinforcing the notion that Binance’s strategic reassessment is a distinct process from recent legal challenges.
Binance has also stopped accepting new users in the UK and has said it would sell its Russia business. In Australia, regulators cancelled the financial services licence of Binance’s derivatives business.
Last week, the securities regulator in the Philippines said it had started the process of blocking Binance there.The Binance spokesperson said on Thursday the company would continue to work with regulators to “to provide world-class services and offerings in the Middle East and beyond.”