Binance withdraws Abu Dhabi licence application

PORTLAND, Oregon – Binance has announced the withdrawal of a licence application in Abu Dhabi, just over two weeks into the

tenure of chief executive officer Richard Teng,

who faces the task of reshaping the company after a money-laundering scandal in the United States.

“When assessing our global licensing needs, we decided this application was not necessary,” a Binance spokesperson said in a statement on Dec 7. The company remains “committed” to working with regulators to provide services in the Middle East and beyond, the spokesperson added.

Mr Teng has indicated that he plans to adopt a conventional corporate structure for the world’s largest crypto exchange, including naming a headquarters and board of directors, as well as providing greater financial transparency.

Binance on Nov 21

pleaded guilty to US anti-money laundering and sanctions violations,

incurring a US$4.3 billion (S$5.8 billion) fine as well as ongoing oversight from the authorities there.

Founder Zhao Changpeng also pleaded guilty and stepped down as CEO, handing arguably the toughest job in crypto to Mr Teng.

A US judge on Dec 7 ruled that Zhao cannot return to his home in the United Arab Emirates (UAE) before he is sentenced. US District Judge Richard Jones rejected the billionaire’s request to return to the UAE following his guilty plea in November.

Zhao, who stepped down as CEO as part of the plea deal, theoretically faces as much as 10 years in prison but is expected to get no more than 18 months. He also agreed to pay a US$50 million fine.

Binance was already adjusting its footprint ahead of the US settlement as it fielded a web of probes in key jurisdictions. The company said it exited Russia, Canada and the Netherlands, and wound down its derivatives exchange in Australia. Binance.US lost banking support and saw trading volumes contract.

While Binance globally remains the biggest platform for buying and selling digital assets as well as crypto derivatives, its dominance is waning. The exchange’s share of spot trading volumes slid to 32 per cent in November from 55 per cent at the start of 2023, according to CCData. Its derivatives market share declined to 48 per cent from more than 60 per cent.

Mr Teng is a civil servant turned crypto executive whose resume includes a stint as CEO of the regulator at Abu Dhabi’s international financial free zone. In an interview with Bloomberg Television in November, he declined to elaborate on the likely location of Binance’s formal headquarters, saying only that the company will make announcements in due time. BLOOMBERG