Binance pulls Abu Dhabi license bid
Understanding Binance's decision to withdraw Abu Dhabi license application
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Binance has withdrawn its application for an asset management license in Abu Dhabi. The application would have enabled Binance’s BV Investment Management unit to operate an investment fund in the United Arab Emirates (UAE).
However, from the official Binance Labs X account, it was stated that:
“The media are confused about the withdrawal of an Abu Dhabi license (that we never used). So we will clarify.
This had nothing to do with the Binance exchange. With the license, we aimed to manage funds raised from LPs. However, we decided to focus on incubating early-stage founders and startups. Hence, the utilization rate of the fund was low. So, we decided to return the money to LPs and cancel the license since we didn’t need it.”
Despite withdrawing its bid for a license, the UAE continues to be a crucial region for Binance. The company possesses active regulatory approvals in Dubai and Abu Dhabi, where the family’s founder, Changpeng Zhao, resides.
However, a spokesperson said the company determined the Abu Dhabi permit needed to be revised to meet Binance’s changed international needs.
Newly appointed CEO Richard Teng confirmed that Binance’s regional headquarters are in Dubai. He added that details on the company’s global base would be shared later.
Since 2022, Binance has retracted licensing applications in Germany, Cyprus, and the Netherlands. Regulators in Belgium, the UK, Australia, and the Philippines have compelled Binance to cease operations or block access to new users.
Recently, Teng reaffirmed Binance’s commitment to collaborating with authorities worldwide to provide compliant digital asset products and services.