Key Points:
Binance Labs Fund cancels Binance Abu Dhabi license applications, citing a shift to focus on startup incubation and low capital utilization.
Binance maintains regulatory permissions in Dubai, its Middle East hub, despite withdrawing an Abu Dhabi license bid.
Binance Labs Fund has clarified that the withdrawal of the Binance Abu Dhabi license application is unrelated to Binance Exchange's global operations.
Binance Labs Cancels Binance Abu Dhabi License to Champion Startup Ecosystem The primary intent behind the license application was to manage funds from limited partners (LPs). However, the team has opted to shift its focus towards incubating early-stage founders and startups, resulting in low capital utilization. Consequently, the decision was made to return funds to LPs and cancel the license application. While Binance had previously withdrawn its bid for an investment management license in Abu Dhabi, citing it as unnecessary for the company's global needs, it still maintains an application to provide custody of digital assets to professional clients. Binance's presence in the Middle East is anchored in Dubai, where it holds regulatory permissions and operates its Middle East and North Africa headquarters. CEO Richard Teng emphasized the significance of the Binance Abu Dhabi license in an interview for a Financial Times conference. Binance Maintains Regulatory Ground Amidst Leadership Changes The recent departure of Binance founder Changpeng Zhao as CEO, unrelated to the U.S. legal settlement where the exchange agreed to pay over $4.3 billion for violating anti-money laundering laws, has not impacted Binance's regulatory permissions in Dubai and Abu Dhabi. The United Arab Emirates (UAE), aiming to establish itself as a digital asset hub, remains a crucial location for Binance. The exchange, with regulatory approvals in both Dubai and Abu Dhabi, continues to contribute to shaping crypto regulations in the region. Accoridng to Reuters, former CEO Zhao, now a UAE citizen in addition to his Canadian citizenship, holds properties in Dubai. Despite the recent leadership changes and legal settlements, Binance remains committed to its presence and operations in the UAE.
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