Binance Withdraws Abu Dhabi Licence Application Under New Management

Binance, the world’s largest crypto exchange, has withdrawn its application for a license to operate a collective investment fund in Abu Dhabi. The unit responsible for the application, BV Investment Management, pulled the request with Abu Dhabi’s Financial Services Regulatory Authority (FSRA) on Nov. 7, after filing it a year ago. The application would have allowed Binance to manage a collective investment fund, as stated on the regulator’s website.

A spokesperson for Binance stated, “When assessing our global licensing needs, we decided this application was not necessary.” The withdrawal of the license application is declared as unrelated to the recent settlement with U.S. authorities, where Binance and its founder, Changpeng Zhao, pleaded guilty to breaking U.S. anti-money laundering laws, resulting in a payment of over $4.3 billion to resolve the investigation.

This decision adds to a series of strategic withdrawals and operational adjustments made by Binance in response to increasing regulatory scrutiny worldwide. In 2023, Binance withdrew from license application processes in Germany, Cyprus, and the Netherlands. Additionally, regulatory authorities in Belgium ordered Binance to cease operations, prompting the establishment of a Polish entity to serve Belgian clients.

The crypto exchange has also halted new user registrations in the UK and announced plans to sell its Russian business. In Australia, regulators canceled the financial services license for Binance’s derivatives business. The company’s founder, Changpeng Zhao, who resigned as CEO, had previously become a citizen of the UAE and owned properties in Dubai, a region where Binance holds regulatory permissions.

Binance’s spokesperson emphasized the company’s commitment to working with regulators, stating, “The company would continue to work with regulators to provide world-class services and offerings in the Middle East and beyond.” The new CEO, Richard Teng, mentioned during a recent conference that the company’s Middle East and North Africa headquarters were in Dubai, while the location of its global headquarters would be announced at a later date.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.