Binance’s Abu Dhabi branch has withdrawn its application with the Emirate’s financial regulator, the Financial Services Regulatory Authority (FSRA), citing unrelated reasons to its recent $4.3 billion settlement with U.S. authorities.
The decision was revealed in a statement to Cointelegraph on December 7.
BV Investment Management, the subsidiary of Binance responsible for the application, had sought regulatory approval from FSRA to manage a collective investment fund.
However, after a comprehensive evaluation of its “global licensing needs,” Binance decided not to pursue this particular application.
A Binance spokesperson emphasized that this choice had no connection to the recent settlement in the United States, which involved Binance’s founder Changpeng “CZ” Zhao pleading guilty to a felony charge and stepping down as CEO.
In his place, Richard Teng, the former head of regional markets, assumed leadership, asserting that the exchange had undergone significant transformation post-settlement.
READ MORE: Russia Launches Innovative Cross-Border Payment Platform for Cryptocurrency Settlements
Despite withdrawing the application, Binance Limited still retains permission to conduct crypto custody-related financial services within the Abu Dhabi Global Market, as indicated on its official website.
Binance’s spokesperson expressed the company’s ongoing commitment to cooperating with global regulators as part of its expansion strategy, which includes establishing a presence in Dubai and other countries.
The $4.3 billion settlement with U.S. authorities, announced on November 21, stemmed from allegations of failure to maintain an effective Anti-Money Laundering program and violating the U.S. Bank Secrecy Act.
CZ Zhao, who was at the center of the controversy, was subsequently released on bail in the United States while awaiting a court decision on whether he could return to his family in the United Arab Emirates.
His potential sentence, set for February, could result in up to 18 months in prison.
In summary, Binance’s decision to withdraw its application with Abu Dhabi’s financial regulator appears to be a strategic move driven by an assessment of its global licensing needs, unrelated to its recent legal troubles in the United States.
Binance remains committed to its expansion plans and collaboration with global regulators, even as it navigates the challenges posed by its leadership changes and legal settlements.
Discover the Crypto Intelligence Blockchain Council
