- Binance has reportedly withdrawn its license application in Abu Dhabi.
- BV Investment Management, Binance’s UAE unit, dropped its license application as part of reassessing its global structure.
- A spokesperson commented that the move has no connection with Binance’s guilty plea in the $4.3 billion settlement.
Binance has reportedly announced the withdrawal of a license application that allowed the platform to operate a collective investment fund in Abu Dhabi amidst increasing regulatory challenges. According to reports, on November 7, BV Investment Management, Binance’s unit in the United Arab Emirates (UAE), dropped its application as part of reassessing its global structure.
Abu Dhabi’s Financial Services Regulatory Authority and the Abu Dhabi Global Market (ADGM) confirmed Binance’s legal status to offer cryptocurrency custodial services to clients in Abu Dhabi in the last year. ADGM Chairman noted the capital city’s larger vision of Web3 expansion, citing, “We look forward to supporting Binance’s operations and R&D in ADGM to develop solutions for the Web3.0 economy.”
Though the current development follows the recent incidents that involved Binance’s guilty plea and Changpeng Zhao’s resignation, a spokesperson revealed that the license withdrawal has no connection with the $4.3 billion settlement. According to a Binance spokesperson, the deal is in consideration of the global restructuring plans, as they cited, “When assessing our global licensing needs, we decided this application was not necessary.”
While the UAE, the Middle East country that aims to establish a crypto hub, remains a key location for Binance, the company is adhering to regulatory norms in the country. As per the official website of Binance, Abu Dhabi still permits the company to perform its services in the city.
Binance CEO Richard Tend asserted that the platform intends to adopt a traditional corporate structure. The structure would include naming a headquarters and a director board, providing better financial transparency. Though he said that the company’s headquarters would be announced “in due course,” he declined to comment further.
Envisioning the global restructuring, reports showed that Binance has already exited Russia, Canada, and the Netherlands. Moreover, the firm has reportedly announced that it will be leaving Australia soon.
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