KEY POINTS
- Binance said ADGM permitted the company to manage a collective investment fund for virtual assets of professional clients
- It withdrew the filing on Nov. 7
- Binance said the withdrawal decision was based on the company's global licensing needs
Binance has recalled its application for an Abu Dhabi license as the crypto exchange reexamines its strategy in the Middle East and North America (MENA) regions.
Binance filed the application for an operating license with Abu Dhabi Global Market (ADGM), the regulator of the United Arab Emirates, last November. The exchange withdrew it on Nov. 7, according to the regulator's website.
"In accordance with FSMR (Financial Services And Markets Regulations) Section 35(1) the following limitations and stipulations apply to each Regulated Activity as detailed: Binance (AD) Limited is not permitted to deal with Retail Clients, as defined in the FSRA's Conduct of Business Rulebook (COBS)," the conditions on the request read.
According to Binance, the regulator permitted the platform to manage a collective investment fund for virtual assets of professional clients but only when it can meet the conditions.
"Binance (AD) Limited has been granted a financial services permission (FSP) by the Financial Services Regulatory Authority to carry out the regulated activity of providing custody, in relation to virtual assets. Once Binance (AD) Limited has met the conditions set out in its FSP, it can commence providing custody services to professional clients," the exchange said on its official website.
But is the latest move connected to the issues Binance was facing in the U.S.?
"When assessing our global licensing needs, we decided this application was not necessary. Abu Dhabi has emerged as a leader in the virtual and digital assets ecosystem, a global hub that encourages innovation and responsible growth, while diligently guarding user interests," a Binance spokesperson said, stressing the company's commitment to work with regulators across the globe.
The development in Abu Dhabi happened in the same month when Binance founder Changpeng Zhao (CZ) stepped down from the post of CEO.
A few days after CZ announced his resignation, Binance's new CEO, Richard Teng, said, "The foundation on which Binance stands today is stronger than ever."
It is an honour and with the deepest humility that I step into the role of Binance’s new CEO.
— Richard Teng (@_RichardTeng) November 21, 2023
We operate the world's largest cryptocurrency exchange by volume. The trust placed on us by our 150m users and thousands of employees is a responsibility that I take seriously and hold…
"To ensure a bright future, I intend to use everything I've learned over the past three decades of financial services and regulatory experience to guide our remarkable, innovative, and committed team." he said. "My focus will be on: 1) reassuring users that they can remain confident in the financial strength, security and safety of the company, 2) collaborating with regulators to uphold high standards globally that foster innovation while providing important consumer protections, 3) working with partners to drive growth and adoption of Web3."
