This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Binance, one of the major cryptocurrency exchanges, has reevaluated its strategy in the Middle East and North Africa (MENA) region and has withdrawn its bid for fund management in Abu Dhabi. This move indicates a strategic realignment by Binance in response to evolving global regulations.
The Abu Dhabi Global Market (ADGM) is the regulator responsible for the request, which was withdrawn on November 7, 2023. Binance’s website states that while the regulator permitted it to manage a collective investment fund, certain conditions must be met before offering the service. These conditions include not holding or controlling client assets or working with retail clients.
However, ADGM has allowed Binance to offer custody services, and this filing has not been withdrawn. Similar to the fund management application, the conditions for custody services also require Binance not to serve retail clients.
Previously, Binance had shown a strong focus on Abu Dhabi as part of its MENA presence. In April 2022, the company gained preliminary approval to operate as a full broker-dealer in Abu Dhabi and was actively hiring for positions in the area.
A spokesperson for Binance stated that the withdrawal of the application is unrelated to the recent investigation settlement with various U.S. agencies and the resignation of the former CEO. They emphasized Binance’s commitment to working with regulators in the Middle East and elsewhere, but did not specifically mention whether retail services will be available in Abu Dhabi.
It is worth noting that the filings were withdrawn by a Binance unit called BV Investment Management, as confirmed by the company’s website.