Cryptocurrency Exchange Binance Withdraws Application with Abu Dhabi Regulator
Binance’s unit in Abu Dhabi has decided to withdraw its application with the Emirate’s financial regulator. The exchange claims that this move is unrelated to the settlement it reached with US authorities in November. Despite this, Binance Limited still holds permission to conduct financial services related to crypto custody in the Abu Dhabi Global Market. The company intends to continue working with global regulators as part of its expansion plans, including in Dubai and other countries.
US Settlement and Bail Status of Zhao
In November, US officials announced an agreement with Binance and its CEO, requiring them to pay $4.3 billion in penalties. Zhao, the CEO, pleaded guilty to one felony count for failing to maintain an effective Anti-Money Laundering program at Binance, which violated the US Bank Secrecy Act. Currently, Zhao is out on bail in the US and awaits a court decision on whether he can return to his family in the United Arab Emirates. If convicted, he could face up to 18 months in prison at his sentencing hearing in February.
Hot Take: Binance Faces Regulatory Challenges Amidst Global Expansion
Binance’s withdrawal of its application with the Abu Dhabi financial regulator highlights the regulatory challenges faced by cryptocurrency exchanges like Binance. While the move may not be directly related to their recent settlement in the US, it underscores the importance of complying with regulatory requirements in different jurisdictions. As Binance continues its global expansion plans, including in Dubai and other countries, it will need to navigate various regulatory landscapes and work closely with regulators to ensure compliance. This serves as a reminder that regulatory compliance is crucial for the long-term success and sustainability of cryptocurrency exchanges.
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