Binance has decided to retract its application for a license in Abu Dhabi, asserting that it deemed the licensure unnecessary.
The withdrawal, on December 7, 2023, transpired approximately a year after Binance submitted the application under BV Investment Management to the Financial Service Regulatory Authority (FSRA) of Abu Dhabi Global Market. FSRA, at present, has not issued any public statements regarding this development.
However, the rationale behind this decision remains unclear, but a representative from Binance indicated that the company perceives the application as superfluous.
Binance Reviews Global Licensing Amid Regulatory Changes, Including the Abu Dhabi License
The spokesperson elaborated, stating that Binance is in the process of evaluating its “global licensing needs.” Importantly, they emphasized that the choice to discontinue the application in Abu Dhabi is entirely “unrelated” to the settlement with U.S. authorities.
Furthermore, back in June 2023, Binance also withdrew its registration as a crypto asset service provider under the Cyprus Securities and Exchange Commission (SEC). The company did not provide an explanation for this decision.
Following this, reports emerged suggesting that the government is considering imposing new penalties on crypto businesses. These penalties could potentially amount to $377,300 in fines and up to five years of imprisonment for non-compliance.
Binance Faces Ongoing Global Regulatory Hurdles Following CEO Change
Moreover, despite Binance Founder Changpeng Zhao relinquishing his role as Chief Executive in late November 2023, the exchange continues to grapple with regulatory challenges worldwide.
For instance, the Philippine Securities and Exchange Commission has recently implemented measures to restrict Binance’s accessibility within the country.
Binance is unauthorized for securities trading in the Philippines as it lacks official registration as a corporation, according to regulators.