According to the latest report, Binance’s Abu Dhabi unit has withdrawn its application with the Emirate’s Financial Services Regulatory Authority (FSRA). The move, announced on December 7th, comes as Binance claims to be reevaluating its “global licensing needs.” Notably, the decision is said to be unrelated to the recent $4.3 billion settlement with U.S. authorities, an agreement that saw Changpeng “CZ” Zhao, the former CEO, plead guilty to a felony charge and step down from his role.
Initially submitted by BV Investment Management, the application aimed to grant Binance the authority to manage a collective investment fund. Despite the withdrawal, Binance Limited, as per its website, retains permission for financial services related to crypto custody in the Abu Dhabi Global Market.
Richard Teng, Binance’s new CEO and former head of regional markets, who assumed the CEO role after CZ’s departure, emphasized that the exchange had undergone significant changes following the settlement. Teng said that today’s Binance is “totally different.”
Binance Ex-CEO CZ’s Restricted Movement
While the exchange reassures its commitment to collaborating with global regulators, including those in Dubai and other nations, the company faces legal challenges in the United States. U.S. officials announced a $4.3 billion settlement on November 21st, requiring CZ and Binance to pay penalties. CZ, who had been free on bail, now faces a new development. According to Reuters, U.S. District Judge Richard Jones approved the government’s motion requiring CZ to stay in the United States until his sentencing on February 23rd, 2024.
Despite earlier indications that CZ could return to the United Arab Emirates (UAE), where he resides, the Justice Department argued that he poses a flight risk. The judge agreed, stating that CZ had not convinced the court he was unlikely to flee if allowed to return to the UAE. CZ, however, remains free under the conditions of his bail and can travel within the United States.
Nevertheless, for now, the leading exchange finds itself navigating complex regulatory landscapes globally, making strategic decisions that impact its operations and partnerships worldwide. The cryptocurrency exchange remains a focal point in the ever-evolving regulatory discussions surrounding the crypto industry.
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