In a change of strategy, Binance, one of the world’s leading cryptocurrency exchanges, has decided to withdraw its application for a financial services license in Abu Dhabi. The withdrawal, which took place on November 7, was confirmed by a Binance spokesperson today, signaling a reassessment of the company’s global operations in the face of growing regulatory scrutiny. management agency.
The application, originally filed a year ago, was intended to allow BV Investment Management, a unit of Binance, to manage a collective investment fund. The move is part of Binance’s broader efforts to strengthen its presence in the United Arab Emirates (UAE), a country striving to become a digital asset hub . Despite the withdrawal, Binance maintains regulatory rights in both Dubai and Abu Dhabi and has been actively involved in shaping the region’s cryptocurrency regulations.
The withdrawal of the Abu Dhabi license bid comes after a series of legal challenges to Binance. Changpeng Zhao, the company’s founder, resigned as CEO last month after pleading guilty to violating US anti-money laundering laws. Binance has agreed to a settlement in excess of $4.3 billion to end a long-running US investigation. However, a Binance spokesperson stated that the decision to withdraw the Abu Dhabi license application was not related to the US legal agreement.
Binance’s regulatory journey has been difficult in various jurisdictions. This year alone, the exchange withdrew its license application in Germany, withdrew from Cyprus and left the Netherlands. It was also forced to cease operations in Belgium by financial regulators, although it later established a Polish entity to serve Belgian customers. The company also paused new user registrations in the UK and announced its intention to sell its Russian business. In Australia, the financial services license of Binance’s derivatives arm was revoked by regulators.
Despite these setbacks, Binance continues to focus on regions where it holds regulated entities, such as France, Italy, and Spain, in anticipation of crypto asset regulations upcoming death of the European Union. Richard Teng, the new CEO of Binance, mentioned at a Financial Times conference on Tuesday that the company’s headquarters for the Middle East and North Africa are in Dubai, with plans to reveal the location of the headquarters global base in the near future.
Adding to Binance’s regulatory difficulties, last week the securities regulator in the Philippines initiated a process that could potentially block Binance’s operations in the country.
Throughout these challenges, Binance has expressed its commitment to working with regulators globally. The spokesperson emphasized the company’s dedication to providing leading services and offerings in the Middle East and beyond, as it navigates the complex regulatory landscape of the cryptocurrency market.
Reuters contributed to this article.
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