Binance Retracts Licensing Application in Abu Dhabi Amidst $4.3B US Settlement
Summary:
Binance, the cryptocurrency exchange, has retracted its licensing application with Abu Dhabi's Financial Services Regulatory Authority, asserting that this decision is unrelated to its recent $4.3 billion settlement with U.S. authorities. The company will continue to provide cryptocurrency-related financial services in Abu Dhabi’s Global Market. Former CEO, Changpeng 'CZ' Zhao, who pleaded guilty to a felony charge as part of the U.S. settlement, awaits a court decision on returning to his UAE-based family, potentially facing an 18-month prison sentence in February.
Binance, the renowned crypto trading platform, has withdrawn its application to be licensed by the Financial Services Regulatory Authority in Abu Dhabi, while asserting that this decision is not linked to its recent $4.3 billion settlement with US authorities. Binance communicated its stance on Dec. 7 to Cointelegraph, stating that the decision was arrived at following a review of its international licensing requirements. Update by BV Investment Management in November inferred that Binance would have managed a mutual investment fund was the license application to go ahead.
Despite the former CEO, Changpeng 'CZ' Zhao, pleading guilty to a felony charge and relinquishing his position as part of the settlement with the US, Binance maintains its actions are unrelated. Richard Teng, who took over regional markets at Binance, reassured Cointelegraph that Binance has fundamentally changed since the agreement.
The company's online portal indicates that Binance Limited retains authority to offer cryptocurrency-related financial services in Abu Dhabi’s Global Market. The spokesperson assured that Binance is committed to upholding regulatory standards around the world, including in Dubai and other nations, as part of its growth strategy.
On Nov. 21, it was made public that an agreement signifying a $4.3 billion penalty was finalized between US officials, Binance and its erstwhile CEO. Zhao has confessed to one count of felony for not establishing an effective Anti-Money Laundering system at Binance, thereby infringing the US Bank Secrecy Act. As of the latest update, Zhao was on bail in the US, awaiting court proceedings to allow him to reunite with his family in the UAE. In February, he may be sentenced to up to 18 months of imprisonment.
Published At
12/8/2023 12:45:30 AM
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