Binance withdraws application to manage Abu Dhabi investment fund: report

Quick Take

Binance withdrew a license application for an investment fund in Abu Dhabi.
The withdrawal is not related to the recent settlement in the U.S., a spokesperson told Reuters.

Binance, the world's largest crypto exchange, decided not to pursue a license to operate a collective investment fund in Abu Dhabi, according to a report.

Binance's entity in the UAE, called BV Investment Management, withdrew the application it filed last November with Abu Dhabi's Financial Services Regulatory Authority. The application was withdrawn on Nov. 7, according to the regulator's website.

"When assessing our global licensing needs, we decided this application was not necessary," a Binance spokesperson told Reuters, adding that the move was unrelated to the firm's recent settlement with the U.S. government over allegations of breaking anti-money laundering rules.

Guilty plea

In November, Binance and its now-former CEO Changpeng Zhao pleaded guilty and agreed to pay $4.3 billion in fines to the U.S. regulators. Zhao stepped down as CEO, and Binance agreed to appoint an independent monitor for five years, "whose mandate will include review and assessment of Binance’s sanctions compliance program."

A year ago, Binance secured a Financial Services Permission in Abu Dhabi, which allowed it to provide crypto custody to professional clients, under certain conditions.

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