Binance Withdraws Application for Abu Dhabi License
Binance has officially withdrawn its application for a financial license in Abu Dhabi. This move is part of the exchange’s ongoing reassessment of its global operations and licensing requirements.
The application, which was submitted by BV Investment Management, aimed to manage collective investment funds. However, Binance has decided that the application is not necessary and has retracted it to align with the company’s compliance needs.
Binance’s Retraction from UAE
“When assessing our global licensing needs, we decided this application was not necessary,” said a Binance spokesperson.
This retraction signals a potential shift in Binance’s operational focus and global strategy. However, it is unrelated to the recent settlement in the U.S., according to the spokesperson.
The Abu Dhabi Global Market’s Financial Service Regulatory Authority (FSRA) declined to comment on the matter.
Binance’s former CEO Changpeng Zhao (CZ), who acquired UAE citizenship, requested to return to the UAE before his sentencing in Feb. 2023. However, a federal judge has ruled that CZ must remain in the U.S.
More Ceased Operations in Other Regions
In the past year, Binance has reduced its presence in several countries as part of its global strategy and regulatory compliance efforts. The exchange withdrew from license application processes in Germany and Cyprus and ceased operations in the Netherlands. It was also directed to stop its operations in Belgium, leading to the establishment of a new entity in Poland.
Outside the EU, Binance has made adjustments by halting new user registrations in the U.K., announcing plans to divest its business in Russia, and facing regulatory restrictions in the Philippines.
Hot Take: Binance Prioritizes Compliance and Global Strategy
Binance’s decision to withdraw its application for a financial license in Abu Dhabi reflects the exchange’s ongoing reassessment of its global operations and compliance needs. While this retraction may signal a shift in Binance’s strategy, it is not related to the recent settlement in the U.S. The exchange has also made adjustments in other regions, including withdrawing from license application processes, ceasing operations, and facing regulatory restrictions. These actions demonstrate Binance’s commitment to navigating the evolving regulatory landscape and ensuring compliance with local laws. As the crypto industry continues to face increased scrutiny, exchanges like Binance are prioritizing compliance to maintain their global presence and protect user interests.
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