Binance Withdraws "Not Necessary" Abu Dhabi Licence Application Amid Company Shake-Up

Binance has withdrawn its application for a license in Abu Dhabi as the company undergoes its biggest restructuring in its history.

Filed by Binance's BV Investment Management arm on 7 November 2022, the Abu Dhabi license would have allowed the firm to manage a collective investment fund.

In a statement, the world's largest crypto exchange claimed the application was not needed.

"When assessing our global licensing needs, we decided this application was not necessary," a Binance spokesperson said.

Despite Binance's dismissal of the license, the United Arab Emirates (UAE) has served as a key location for the firm, which recruited over 100 positions in Dubai last year.

In July, Binance became the first virtual asset exchange to receive an operational MVP license in Dubai.

Binancial Trouble

Although Binance's spokesperson claims the decision to withdraw the Abu Dhabi application was "unrelated" to the recent settlement in the US, its recent woes have undoubtedly caused friction in the firm.

Last month, Binance was lumbered with a $4 billion fine whilst its founder and CEO, Changpeng Zhao, consequently stepped down.

CZ also faces a $50 million fine and has been refused the right to return to the UAE before his sentencing in February 2024.

Zhao pleaded guilty to violating the Bank Secrecy Act last month and was released on a $175 million personal recognizance bond, which originally allowed him to return to the UAE, where his children and partner live.

Prosecutors revoked his right to return to the UAE as he was deemed a flight risk. District Judge Richard Jones, of the Western District of Washington, agreed with the Department of Justice.

$1 billion has flooded out of the exchange since CZ's departure and whilst Richard Teng has taken the helm with confidence, his first round of public interviews has failed to win anyone over.