In a surprising turn of events, Binance, the leading global cryptocurrency exchange, has chosen not to go ahead with its plans to establish a collective investment fund in Abu Dhabi. This comes after Binance withdraws application that it had initially submitted to the Financial Services Regulatory Authority in Abu Dhabi in November.
Understanding the Withdrawal
Binance’s UAE-based entity, BV Investment Management, was the one that had filed the application. However, it was retracted on November 7, as per the information available on the regulator’s website. When questioned about this unexpected move, a spokesperson from Binance clarified that the decision was made after evaluating their global licensing requirements. They concluded that this particular application was not required.
Clarifying Misconceptions
The spokesperson further added that this move is in no way related to the company’s recent settlement with the U.S. government over allegations of violating anti-money laundering regulations. In November, Binance, along with its former CEO Changpeng Zhao, had pleaded guilty and agreed to pay a hefty fine of $4.3 billion to U.S. regulators. Following this, Zhao stepped down from his position as CEO and Binance agreed to appoint an independent monitor for a period of five years to oversee the company’s compliance with sanctions.
Previous Permissions and Future Prospects
Interestingly, Binance had secured a Financial Services Permission in Abu Dhabi a year ago. This permission granted Binance the ability to offer cryptocurrency custody services to professional clients, albeit under certain conditions. Despite the withdrawal of the recent application, Binance continues to hold this permission.
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Note: This article is meant to provide information and should not be considered as financial advice. Always conduct your own research before making any investment decisions.
