Binance pulls back from Abu Dhabi license

Binance has withdrawn its application for an Abu Dhabi license, saying it ‘was not necessary.’

According to a Reuters report on Dec. 7, 2023, crypto exchange Binance has decided not to proceed with its application for an Abu Dhabi license.

The move comes just a year after the exchange filed the request for its firm called BV Investment Management with Abu Dhabi Global Market’s Financial Service Regulatory Authority (FSRA). As of press time, FSRA made no public statements on the matter.

While the reason for the move is not clear, a spokesperson for Binance said the company considered the application to be unnecessary as the exchange is assessing its “global licensing needs.” The spokesperson also added the decision to pull out of Abu Dhabi was “unrelated” to the U.S. settlement.

In June 2023, Binance also withdrew its registration as a crypto asset service provider with the Cyprus Securities and Exchange Commission (SEC), without explaining the reason behind the move. A few months later, crypto.news reported that the government is weighing new penalties for crypto businesses, which could mean up to $377,300 and imprisonment of up to five years for failing to comply with the local rules.

Although Binance Founder Changpeng Zhao stepped down as the exchange’s Chief Executive in late November 2023, Binance is still facing regulatory pressure around the world.

For instance, the Philippine Securities and Exchange Commission recently initiated measures to restrict the accessibility of Binance within the nation. The regulator claims the exchange lacks official registration as a corporation in the Philippines. Therefore, it’s not legally permitted to offer securities trading services in the country.