Binance has withdrawn its application to operate in Abu Dhabi, per Reuters. A few weeks after Richard Teng took up the mantle of CEO, the crypto exchange is moving in the opposite direction.
This move is a sign that Binance is changing its outlook on its stand in global finance.
BV Investment Management, a subsidiary investment arm of the Binance company, was responsible for the license application after filing it a year ago.
A spokesperson from Binance said, “When assessing our global licensing needs, we decided this application was not necessary,” hence the withdrawal.
This decision comes shortly after Changpeng “CZ” Zhao, Binance’s founder, stepped down as CEO of the company. CZ had pulled many strings to penetrate the UAE. Abu Dhabi’s goal to be the crypto hub of the United Arab Emirates saw it try to be Binance’s key location of Operations by providing favorable regulatory conditions.
According to the new rules for web 3.0 firms that Abu Dhabi introduced, a “DLT Foundation” can be established by submitting a signed charter along with the organization’s white paper, tokenomics paper, and a link to a technical document called a DLT Framework. The charter should also include details about the foundation’s governance and initial assets, if any.
Is Binance Self-Sabotaging?
Since June 2023, Binance has withdrawn from license application processes in Germany and Cyprus and repeated the same in the Netherlands. In Belgium and Australia, financial regulators ordered it to stop operations. The company also pulled out of the United Kingdom and is planning to sell its Russia-based business.
Instead of advancing its reach, Binance is shrinking.
Binance’s spokesperson has, however, said the company will continue to work with financial regulators to provide world-class services in the Middle East and beyond.