Binance reevaluates MENA strategy, retracts Abu Dhabi fund management bid

The major cryptocurrency exchange Binance withdrew 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Dhabi Global Market (ADGM) is the regulator responsible for the request, which took effect on Nov. 15, 2022, and was withdrawn on Nov. 7, 2023.

On its website, Binance states that the regulator permitted it 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 once it meets the relevant conditions. ADGM’s conditions require Binance not to hold or control client assets or work with retail clients.

Binance also states that ADGM has permitted it to offer custody services. That filing was submitted on Nov. 15, 2022, and has not been withdrawn. Once again, the conditions of this application require Binance not to serve retail clients.

Binance previously seemed to be focused on Abu Dhabi as part of its strong Middle East and North Africa (MENA) presence. In April 2022, The company gained, in principle, approval to operate as a full broker-dealer in Abu Dhabi. Reuters noted that the company was hiring over 100 positions in the area around that time.

Withdrawal is unrelated to U.S. issues

Though Binance has not announced the matter, a separate report from Reuters on Dec. 7 includes statements from a company spokesperson.

The spokesperson said that Binance “decided this application was unnecessary” as it examined its global licensing requirements. The same representative added that Binance’s decision to withdraw the application was unrelated to a recent investigation settlement with various U.S. agencies, coinciding with the resignation of now-former CEO Changpeng Zhao.

The spokesperson noted that the filings were withdrawn by a Binance unit called BV Investment Management, a fact confirmed by the company’s website.