Binance Retracts Abu Dhabi Fund Management Bid

By: Eva Baxter

Global cryptocurrency exchange Binance has withdrawn a request for certain operations in Abu Dhabi, as per a recent updated filing with the Abu Dhabi Global Market (ADGM). The application, originally submitted on Nov. 15, 2022, and withdrawn on Nov. 7, 2023, intended to manage a collective investment fund—that is, a fund that pools assets from multiple sources.

The conditions of this application required Binance to avoid holding or controlling client assets or working with retail clients. Although Binance states that ADGM permitted it to offer custody services, it doesn't clarify whether retail services will be available in Abu Dhabi. Furthermore, a separate filing for custody services submitted on Nov. 15, 2022, remains in force, subject to similar conditions.

Withdrawing this application does not relate to settlement with multiple US agencies, as declared by a Binance spokesperson. The withdrawal and settlement coincided with the resignation of Binance CEO Changpeng Zhao. Binance remains committed to working with regulators globally, including the Middle East.