According to a recent development, Binance, the world’s largest cryptocurrency exchange, has withdrawn its application to obtain a license in Abu Dhabi.
The move comes as the company faces increased regulatory scrutiny around the world.
The application, filed by Binance affiliate BV Investment Management, was withdrawn through Abu Dhabi’s financial regulator on November 7, a year after the initial application was made. The license would allow the firm to manage a collective investment fund, according to the regulator’s website.
A Binance spokesperson stated that the decision was made after evaluating the company’s global licensing needs and determining that the application was not necessary. Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) declined to comment on the matter.
This development comes after Binance founder Changpeng Zhao resigned as CEO last month after being found guilty of violating US anti-money laundering laws. The stock exchange agreed to pay over $4.3 billion to resolve the years-long US investigation. However, a Binance spokesperson clarified that the decision to withdraw the license application had nothing to do with the agreement in the United States.
The United Arab Emirates (UAE) has been an important location for Binance as it strives to become a digital asset hub. The company has regulatory clearances in Dubai and Abu Dhabi, and last year announced it was hiring for more than 100 positions in Dubai to help shape crypto regulations.
The company’s new CEO, Richard Teng, stated at the Financial Times conference in London that the company’s Middle East and North Africa headquarters is in Dubai.
*This is not investment advice.
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