Binance withdraws application for investment fund license in Abu Dhabi, UAE

Review the need for licenses

Binance, a major crypto asset (virtual currency) exchange, announced on the 7th that it has withdrawn its application for an investment fund license in Abu Dhabi, United Arab Emirates (UAE).

Binance’s local subsidiary, BV Investment Management, submitted a license application to Abu Dhabi Global Market (ADGM), Abu Dhabi’s financial center and regulator, in November last year.

According to the ADGM website, Binance withdrew this application on November 7th.

A Binance spokesperson said, “After evaluating our licensing needs globally, we determined that this application was not necessary.” He also went on to say that the move is unrelated to Binance’s settlement with the U.S. government over alleged violations of anti-money laundering rules.

Binance also said it will continue to work with regulatory authorities to expand its services in the Middle East and beyond.

In November, the global version of Binance reached a settlement with the U.S. Treasury Department, agreeing to pay a fine of approximately 633 billion yen. Changpeng Zhao (CZ) also agreed to pay a fine of approximately 7.4 billion yen and resigned as CEO.

connection: US District Court accepts guilty plea from former Binance CZ CEO

Global expansion status

Binance appears to be currently reviewing its global strategy. In June, it was revealed that Binance had filed an application to revoke the business license of Binance Cyprus Limited, located in the Mediterranean island nation of Cyprus.

In Europe, the company plans to focus on larger markets such as France, Italy and Spain.

connection: U.S. SEC and Binance US begin talks over asset freeze

In September, the company announced that it would sell all of its Russian operations due to Russia’s invasion of Ukraine and economic sanctions against Russia. The company explained that continuing to operate in Russia is not consistent with Binance’s compliance strategy.

connection: Binance to completely withdraw from Russian market, sell business to virtual currency exchange CommEX

Meanwhile, in August, it launched a new platform for Japanese residents, “Binance Japan.” CEO Tsuyoshi Chino also talked about the prospect of collaborating with Japanese private companies and government beyond the framework of virtual currency transactions.

connection: Binance Japan announces domestic strategy, focusing on “Web3 spread and stable coin business”

Movement in UAE

Binance is also strengthening ties with the UAE. In November 2022, it obtained a virtual currency custody license in Abu Dhabi.

In April 2022, the company announced that it was recruiting for more than 100 jobs in its UAE operations.

“Dubai is definitely a very important location, and we will be considering various options going forward,” CZ said at the time, adding that Binance is conducting an internal review as to where it will be based.

Although Binance operates around the world, it has not yet decided where its headquarters will be located.

Since 2021, Binance has also partnered with the Dubai World Trade Center Authority in developing new crypto regulations for Dubai.

Additionally, Mr. CZ has currently been living in Dubai for the past few years. There is also the possibility that he may temporarily leave the United States and return to Dubai on bail before his sentencing date of February 23, 2024.

connection: Binance to support Dubai’s virtual currency regulation development

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