Major cryptocurrency exchange Binance has withdrawn an application for certain operations in Abu Dhabi, according to a recently updated filing.
The Abu Dhabi Global Market (ADGM) is the regulator responsible for the request, which came into effect on November 15, 2022 and was withdrawn on November 7, 2023.
On its website, Binance states that the regulator has given the company permission to manage a collective investment fund, that is, a fund that pools assets from multiple clients or sources. However, Binance also states that it can only offer the service if it meets the relevant conditions. ADGM’s terms require Binance not to hold or control customer assets or work with retail customers.
Binance also states that ADGM has given permission to offer custody services. That application was submitted on November 15, 2022 and has not been withdrawn. Again, the terms of this filing require that Binance not serve retail customers.
Binance previously appeared to be focused on Abu Dhabi as part of its strong presence in the Middle East and North Africa (MENA). In April 2022, the company received in-principle approval to operate as a full broker-dealer in Abu Dhabi. Reuters noted that the company was hiring more than 100 positions in the region around that time.
Withdrawal has nothing to do with American issues
A Binance spokesperson provided a statement to CryptoSlate, writing:
“When we assessed our global licensing needs, we concluded that this application was not necessary. Abu Dhabi has emerged as a leader in the virtual and digital asset ecosystem, a global hub that drives innovation and responsible growth while closely guarding the interests of its users.”
The spokesperson also said the company is willing to work with regulators in the Middle East and elsewhere. When asked, they did not specifically indicate whether retail services are or will be available in Abu Dhabi.
In a separate report from Reuters on December 7, a spokesperson said Binance’s decision to withdraw the application was not related to a recent investigation settlement with several US agencies. That settlement coincided with the resignation of former Binance CEO Changpeng Zhao.
The Reuters contact also noted that the signups had been withdrawn by a Binance unit called BV Investment Management, a fact confirmed by the company’s website.