Binance, the cryptocurrency exchange that attracted attention with its agreement with the USA, has withdrawn its license application in the United Arab Emirates.
According to a recent development, Binance, the world’s largest cryptocurrency exchange, has withdrawn its application to obtain a license in Abu Dhabi.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The application, filed by Binance affiliate BV Investment Management, was withdrawn through Abu Dhabi’s financial regulator on November 7, a year after the initial application was made.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.
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“When assessing our global licensing needs, we decided this application was not necessary. Abu Dhabi has emerged as a leader in the virtual and digital assets ecosystem, a global hub that encourages innovation and responsible growth, while diligently guarding user interests,” the spokesman said.
The spokesperson additionally said that the company is committed to working with regulators in the Middle East and elsewhere. When asked, they did not specifically state whether retail services are or will be available in Abu Dhabi.
In a separate report from Reuters on Dec. 7, a spokesperson said that Binance’s decision to withdraw the application is unrelated to a recent investigation settlement with various U.S. agencies. That settlement coincided with the resignation of now-former Binance CEO Changpeng Zhao.
Reuters’ contact also noted that the filings were withdrawn by a Binance unit called BV Investment Management, a fact confirmed by the company’s website.
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.
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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.
