Binance has withdrawn its bid for an investment management license in Abu Dhabi, having deemed it unnecessary to the company’s “global needs.”
On December 7, 2023, Reuters reported that cryptocurrency exchange Binance had chosen not to move forward with its application for a license in Abu Dhabi.
Less than a year ago, the exchange submitted a request to the Financial Service Regulatory Authority (FSRA) of Abu Dhabi Global Market for its company, BV Investment Management. To yet, FSRA has not released any official statements regarding this issue.
Although the cause for the reversal is unclear, a Binance representative stated that the exchange is evaluating its “global licensing needs,” hence the application was deemed superfluous.
The official clarified that the withdrawal from Abu Dhabi had nothing to do with the US settlement. Without providing an explanation, Binance also canceled its registration with the Cyprus Securities and Exchange Commission (SEC) in June 2023 as a provider of crypto asset services.
A few months later, it was revealed that the government is considering new sanctions for cryptocurrency companies, which may result in fines of up to $377,300 and five years in jail for breaking local laws.
Despite Changpeng Zhao, the founder of Binance, resigning as the exchange’s CEO in late November 2023, Binance continues to be under regulatory scrutiny globally.
For example, the Philippine Securities and Exchange Commission recently started taking action to limit Binance’s accessibility within the country. According to the regulator, the exchange is not formally registered as a corporation in the Philippines. As a result, providing securities trading services in the nation is illegal.
