<p>Leading global crypto exchange Binance has chosen to withdraw its bid for a trading license in Abu Dhabi, according to information gleaned from the Abu Dhabi Global Market (ADGM) register and a <a href="https://www.reuters.com/technology/binance-withdraws-abu-dhabi-licence-bid-crypto-giant-weighs-structure-2023-12-07/" rel="noopener noreferrer nofollow">report</a> published by Reuters on Thursday.</p><h2 id="header-0">Change of direction</h2><p>The local subsidiary company responsible for the application, BV Investment Management Limited, initially submitted its licensing bid on Nov. 15, 2022. Much has changed in the crypto space and in the fortunes of Binance over the course of the past year, leading the firm to withdraw its application on Nov. 7.</p><p>This proposed license would have granted Binance the authority to pool and invest funds from professional investors. The decision to retract the bid is part of Binance’s broader reevaluation of its overall strategy going forward. “When assessing our global licensing needs, we decided this application was not necessary,” a spokesperson from the company told Reuters.</p><h2 id="header-1">Adapting to new circumstances</h2><p>Much has changed for Binance in 2023. The company has been combating regulatory pushback in multiple jurisdictions worldwide, not least in the United States, where Binance founder Changpeng Zhao (CZ) recently reached a plea agreement with U.S. prosecutors and agreed to pay $4.3 billion for violations related to money laundering and sanctions laws.</p><p>As part of that process, CZ stepped down as CEO, <a href="https://medium.com/&#64;coinness.gl/singaporean-takes-helm-at-binance-as-cz-steps-aside-f73745a8cdb4" rel="noopener noreferrer nofollow">passing</a> the leadership to Singaporean Richard Teng. Teng is a former regulatory executive who previously oversaw the exchange’s regional operations. A spokesperson for the company maintained that this recent decision relative to licensing in Abu Dhabi is entirely unrelated to the recently agreed-upon settlement in the United States.</p><h2 id="header-2">UAE ties</h2><p>While Binance may be dropping its attempts to gain licensing in Abu Dhabi, in July the company acquired a Minimum Viable Product (MVP) license from the Virtual Assets Regulatory Authority in the United Arab Emirates’ (UAE) other major center, Dubai. The UAE is also the location where CZ has established his home.</p><p>Some had speculated that the company had also established its headquarters within the UAE. However, CZ has always refused to disclose the firm’s global headquarters, instead suggesting that the firm has no global headquarters. Teng has taken a similar <a href="https://www.ft.com/content/77e9282e-cde2-4ea2-bcbc-eae7c88a7910" rel="noopener noreferrer nofollow">approach</a>.</p><p>Binance was originally founded in China in 2017. It then shifted its headquarters to Japan and later established a base in Malta to circumvent regulatory challenges in China. Similarly, it’s thought that regulatory scrutiny provides the rationale for the company’s ongoing stance in refusing to confirm the location of its corporate headquarters.</p><p>Despite regulatory challenges, Binance had previously expressed a focus on expanding its operations in the Middle East, known for its crypto-friendly environment and specific regulatory frameworks. Binance holds various crypto licenses from regulators in the region. In May of last year, it <a href="https://www.binance.com/en/blog/ecosystem/binance-bahrain-becomes-the-first-cryptoasset-service-provider-to-hold-a-full-category-4-license-421499824684903903" rel="noopener noreferrer nofollow">acquired</a> a Category 4 crypto-asset service provider (CASP) license from the Central Bank of Bahrain.</p><p>The exchange maintains registrations and licenses across Europe, Asia and other regions. It’s had mixed fortunes in its endeavors over recent months, driven out of some markets while making in-roads in others. Earlier this week, its Binance Japan subsidiary became <a href="https://medium.com/&#64;coinness.gl/binance-japan-now-fully-operational-19b1d81e9178" rel="noopener noreferrer nofollow">fully operational</a>. Last week, regulators in the Philippines moved <a href="https://medium.com/&#64;coinness.gl/regulatory-breach-sees-philippines-initiate-blockade-on-binance-da681cc79844" rel="noopener noreferrer nofollow">against</a> the company due to regulatory irregularities.</p>

Binance withdraws Abu Dhabi bid amid global licensing reevaluation

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