Binance Withdraws Abu Dhabi License Application Amid Global Regulatory Pressure
Crypto exchange Binance has decided to withdraw its application for an Abu Dhabi license as it reevaluates its global structure in response to mounting regulatory pressure. The unit within Binance, BV Investment Management, pulled the application it filed with the Abu Dhabi Global Market Financial Service Regulatory Authority (FSRA) on November 7.
Binance Faces Mounting Pressure
A spokesperson for Binance confirmed the withdrawal of the license application, stating that it was deemed unnecessary when assessing the exchange’s global licensing needs. The decision is unrelated to the recent settlement with US regulators, which saw Binance founder Changpeng “CZ” Zhao step down as CEO and the appointment of Richard Teng as the new CEO.
Settlement Agreement Approved
On December 6, the settlement agreement between Binance, CZ, and US regulators was ratified in court. Zhao pleaded guilty to breaching the Bank Secrecy Act (BSA), and his sentencing is scheduled for February 23, 2024.
Hot Take: Binance Adapts Amid Regulatory Challenges
Binance’s decision to withdraw its Abu Dhabi license application demonstrates the exchange’s strategic approach in navigating the evolving regulatory landscape. With mounting pressure from global regulators, Binance is reassessing its global structure and licensing needs to ensure compliance and maintain its position in the market. The recent settlement with US regulators and the appointment of a new CEO are part of Binance’s efforts to address regulatory concerns and adapt to the changing industry landscape.
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