The Abu Dhabi arm of the cryptocurrency exchange Binance has retracted its application with the emirate's financial regulatory body, a decision reportedly unconnected to the company's recent settlement with U.S. authorities in November.
According to a statement provided on December 7, a spokesperson for Binance indicated that, after evaluating its "global licensing needs," the exchange opted against pursuing approval from the Abu Dhabi Financial Services Regulatory Authority. The withdrawn application, previously submitted by BV Investment Management in November, sought authorization for Binance to oversee a collective investment fund.
The spokesperson clarified that Binance's choice was independent of the $4.3 billion settlement with U.S. authorities, which saw Changpeng Zhao, widely known as "CZ," pleading guilty to a felony charge and stepping down as CEO. Richard Teng, who succeeded CZ as Binance's former head of regional markets, conveyed to Cointelegraph that the exchange had undergone significant transformation following the settlement. Notably, Binance Ltd. retains authorization for financial services linked to cryptocurrency custody within the Abu Dhabi Global Market, as listed on its website. The spokesperson emphasized that Binance intends to continue liaising with global regulators as part of its expansion plans, including in Dubai and various other nations.
In a significant development on November 21, U.S. authorities announced an accord with Binance and CZ that entailed a hefty $4.3 billion fine. Zhao pleaded guilty to a single felony count concerning the violation of the U.S. Bank Secrecy Act, particularly for failing to uphold an effective anti-money laundering program at Binance.
As of the present moment, Zhao is out on bail in the United States, while a court is deliberating on a motion seeking permission for the former CEO to reunite with his family in the United Arab Emirates. He could potentially face a sentence of up to 18 months in prison following the scheduled sentencing in February.
