Crypto exchange Binance withdrew its application for an Abu Dhabi license as the exchange reassessed its global structure amid global regulatory pressure.
Reports emerged that Binance withdrew the license application it filed in Abu Dhabi. According to Reuters, the Binance unit, called BV Investment Management, pulled the application with the Abu Dhabi Global Market Financial Service Regulatory Authority (FSRA).
Binance Faces Mounting Pressure
Binance spokesperson shared the news, according to Reuters. Binance filed the application a year ago and withdrew it on November 7. The license would have allowed the platform to manage a collective investment fund if granted. The spokesperson for Binance was quoted as saying:
“When assessing our global licensing needs, we decided this application was not necessary.”
The spokesperson further explained the decision to withdraw the application is “unrelated” to the recent US settlement. Binance settled with US regulators, including the Department of Justice (DOJ), the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Commodity Futures Trading Commission (CFTC) for the exchange’s failure to register as a money services business and violations of the Bank Secrecy Act (BSA). The settlement agreement saw Changpeng “CZ” Zhao step down from his role as Binance CEO, and the company now faces a fine of $4.3 billion. Richard Teng was appointed as Binance’s new CEO.
Settlement Agreement Approved
On December 6, Seattle District Court Judge Richard Jones ratified the settlement and approved the plea deals between Binance, CZ and US regulators. Zhao acknowledged guilt in breaching the BSA, which dismissed the DOJ investigation. Zhao is scheduled to be sentenced on February 23, 2024.
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