Binance on Abu Dhabi License Withdrawal

Binance, amidst heightened regulatory attention, has withdrawn its application for a pivotal financial license in Abu Dhabi, indicating a reconsideration of its strategy.

Initially submitted a year ago and retracted on November 7, the application aimed for permission to oversee a collective investment fund, according to Abu Dhabi‘s financial regulator’s website. Despite speculations, a Binance spokesperson clarified that this move was not linked to the recent U.S. settlement.

The company, holding regulatory clearances in Dubai and Abu Dhabi, has actively engaged in shaping cryptocurrency regulations in the region. Notably, Binance had announced plans to fill over 100 positions in Dubai last year.

A Binance spokesperson stated that the company assessed its global licensing requirements and determined that the specific license, managed by BV Investment Management Limited for overseeing a collective investment fund, was deemed unnecessary. As a result, the company voluntarily pursued the cancellation of this license.

Changpeng Zhao, the former CEO with Canadian citizenship and Chinese heritage, received UAE citizenship and reportedly owns property in Dubai. The newly appointed CEO, Richard Teng, disclosed during a Financial Times conference that the companys headquarters for the Middle East and North Africa reside in Dubai, hinting at an upcoming announcement regarding its global headquarters' location.

Throughout this year, Binance has withdrawn from various markets such as Germany, Cyprus, and the Netherlands, encountering operational limitations in Belgium. However, it established a Polish entity to cater to Belgian clients and emphasized its focus on pivotal EU markets like France, Italy, and Spain, anticipating forthcoming crypto asset regulations in the EU.

Abu Dhabi boasts one of the most sophisticated regulatory frameworks for digital assets, providing clarity for entrepreneurs and clients. The UAE, particularly, exhibits strong support for fintech, showcasing initial success stories in the Middle East's fintech landscape.

While persisting in regional expansion, Binance had sought an IPA in Abu Dhabi (eventually intending for an FSP), marking its third approval in the Middle East, following Bahrain and Dubai, the second-largest city in the UAE after Abu Dhabi.