Binance Withdraws Application for Abu Dhabi License
Crypto exchange Binance has chosen not to proceed with its application for an Abu Dhabi license, stating that it was unnecessary. The exchange had filed the request for its firm called BV Investment Management with Abu Dhabi Global Market’s Financial Service Regulatory Authority (FSRA) a year ago. FSRA has not made any public statements regarding this matter.
Although the reason behind the withdrawal is unclear, a Binance spokesperson stated that the company is evaluating its global licensing needs and deemed the application unnecessary. The decision to withdraw from Abu Dhabi is unrelated to the recent U.S. settlement.
Continued Regulatory Pressure
This move follows Binance’s withdrawal of registration as a crypto asset service provider with the Cyprus Securities and Exchange Commission (SEC) earlier in June 2023. The reason for this decision was not disclosed. Additionally, there have been reports of potential penalties for non-compliance with local rules, including fines of up to $377,300 and imprisonment of up to five years.
Although Binance’s Founder Changpeng Zhao stepped down as Chief Executive in November 2023, the exchange continues to face regulatory challenges worldwide. In the Philippines, the Securities and Exchange Commission has taken measures to restrict Binance’s accessibility due to its lack of official registration as a corporation in the country.
Hot Take: Binance Reevaluates Global Licensing Strategy
Binance’s withdrawal of its application for an Abu Dhabi license suggests that the exchange is reevaluating its global licensing strategy. This decision comes amid ongoing regulatory pressure faced by Binance around the world. While specific reasons for withdrawing from Abu Dhabi are unclear, it is apparent that Binance is taking steps to ensure compliance with local regulations and reassessing its licensing needs. As crypto exchanges navigate the evolving regulatory landscape, strategic decisions regarding licensing and compliance will continue to shape the industry’s future.
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