Reports reveal that Binance‘s unit, BV Investment Management, withdrew its license application from the Abu Dhabi Global Market Financial Service Regulatory Authority (FSRA). The application, filed a year ago, aimed to secure permission to manage a collective investment fund.
Global Licensing Assessment: A spokesperson for Binance explained that the decision to withdraw the application was part of an evaluation of the platform’s global licensing requirements. The spokesperson stated, “When assessing our global licensing needs, we decided this application was not necessary.” Importantly, they emphasized that this move is “unrelated” to the recent settlement with US regulators.
Pressure on Binance
This move follows Binance’s recent settlement with U.S. regulatory bodies, including the Department of Justice (DOJ), Financial Crimes Enforcement Network (FinCEN), Office of Foreign Assets Control (OFAC), and the Commodity Futures Trading Commission (CFTC). The settlement, which resulted in a $4.3 billion fine and CEO Changpeng “CZ” Zhao stepping down, was unrelated to the Abu Dhabi license withdrawal, according to the spokesperson.
Binance clarified that the decision to pull the Abu Dhabi application had no connection to the recent settlement, indicating an independent assessment of the exchange’s global licensing strategy. The settlement, approved by Seattle District Court Judge Richard Jones on December 6, saw CZ admitting guilt for violating the Bank Secrecy Act (BSA).
With CZ’s departure, Richard Teng assumed the role of Binance’s new CEO. The platform’s focus on adapting to regulatory dynamics reflects its commitment to addressing compliance concerns and fostering sustainable growth in the evolving cryptocurrency landscape.
The withdrawal of the Abu Dhabi license application aligns with Binance’s strategic adjustments as it navigates global regulatory challenges. The exchange continues to adapt its operations to comply with regulatory requirements worldwide, ensuring a resilient and compliant framework for its users.