The Cryptocurrency Giant Says It’s Unnecessary to “Global Needs”
Binance, the world’s largest cryptocurrency exchange by trading volume, announced the withdrawal of its application for a license in Abu Dhabi. As previously reported, Binance applied for the license in 2020 to establish a regulated base in the Middle East. However, the withdrawal of the license application reportedly came after Binance experienced delays in the approval process.
This decision highlights the increasingly complex international regulatory environment for cryptocurrency exchanges. Governments around the world are cracking down on the unregulated and often opaque digital asset markets, and establishing credibility requires compliance with regulatory frameworks and international standards.
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The application, filed by Binance affiliate BV Investment Management, was withdrawn on November 7, a year after the initial request was made. The license would have allowed the firm to manage a collective investment fund, according to the regulator’s website.
“When assessing our global licensing needs, we decided this application was not necessary,” the Binance spokesperson said.
The decision to pull the license application comes amid growing regulatory scrutiny of Binance’s global operations. Last month, Binance founder Changpeng Zhao stepped down as CEO after pleading guilty to breaking U.S. anti-money laundering laws, with the exchange agreeing to pay over $4.3 billion to resolve a years-long U.S. investigation.
The Binance spokesperson said that the withdrawal of the Abu Dhabi license application was “unrelated” to the U.S. settlement.
Binance has been expanding its presence in the Middle East, where it has secured regulatory permissions in Dubai and Abu Dhabi. The exchange has also been recruiting over 100 positions in Dubai and helping to shape its crypto regulations.
Binance’s new CEO Richard Teng, who previously worked as the chief executive of Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA), said the company’s Middle East and North Africa headquarters were in Dubai.
He said the company would announce the location of its global headquarters “in due course”, but declined to give further details.
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Binance has been seeking to establish a clear and beneficial regulatory framework that safeguards market integrity and consumer safety while fostering innovation and growth in the crypto industry. Overall, the increased regulatory scrutiny of the cryptocurrency industry represents both a challenge and an opportunity. By investing in compliance and building trust with regulatory authorities, exchanges can foster greater mainstream adoption of digital assets. Nonetheless, the giant crypto exchange is reassessing its global structure as regulatory pressures mount and will continue to work with regulators “to provide world-class services and offerings in the Middle East and beyond.”
