Cryptocurrency exchange Binance has formally withdrawn its license application in Abu Dhabi, revealing the decision just over two weeks into the tenure of its new CEO, Richard Teng. Teng faces the formidable task of reshaping the company following its recent guilty pleas to charges in the United States.
A spokesperson for Binance stated on Thursday, “When assessing our global licensing needs, we decided this application was not necessary.” Despite withdrawing the application, the company emphasizes its ongoing commitment to collaborating with regulators to offer services not only in the Middle East but also globally.
Richard Teng, in his capacity as CEO, has expressed plans to implement a more traditional corporate structure for Binance, intending to designate a headquarters, establish a board of directors, and enhance financial transparency.
Binance recently pleaded guilty on November 21 to charges of U.S. anti-money laundering and sanctions violations, resulting in a substantial $4.3 billion fine and continued oversight from U.S. authorities. The company’s founder, Zhao Changpeng, also pleaded guilty and stepped down from the CEO position, passing the reins to Teng.
Prior to the U.S. settlement, Binance had been making strategic adjustments to its global presence. It exited operations in Russia, Canada, and the Netherlands, while winding down its derivatives exchange in Australia. Binance.US experienced challenges with banking support and witnessed a contraction in trading volumes.
Despite remaining a major player globally for digital asset trading and crypto derivatives, Binance’s dominance has faced a decline. Its share of spot trading volumes slipped to 32% in November, down from 55% at the beginning of 2023, according to CCData. In the derivatives market, its share dropped to 48% from over 60%.
Richard Teng, a former civil servant turned crypto executive with experience as the CEO of the regulator at Abu Dhabi’s international financial free zone, has not disclosed the formal headquarters location for Binance, stating only that announcements will be made in due course during an interview with Bloomberg Television last month.
