Coin Edition -
- Binance has clarified the misconception regarding its license withdrawal from Abu Dhabi.
- Binance Labs Fund stated the move had no relationship with the Binance exchange.
- Binance initially sought the Abu Dhabi license to oversee funds raised from LPs but later found it unnecessary.
The Binance team has taken to X to provide clarification surrounding the news of its license withdrawal from Abu Dhabi. In a communication on Friday, Binance Labs Fund, the investment arm of the largest crypto exchange, Binance, stated that the Abu Dhabi license withdrawal had nothing to do with the trading platform.
On Thursday, reports circulated in the crypto community that Binance retracted its license application enabling the operation of a collective investment fund in Abu Dhabi, citing growing regulatory obstacles.
Specifically, it was mentioned that BV Investment Management, Binance’s subsidiary in the United Arab Emirates, withdrew its application on November 7 as part of a comprehensive review of the platform’s global organizational framework. The development elicited varied responses from crypto market participants, prompting Binance Labs Fund’s clarification note.
Media are confused about the withdrawal of an Abu Dhabi license (that we never used). So we will clarify. This had nothing to do with the Binance exchange. With the license, we aimed to manage funds raised from LPs. However we decided to focus on incubating early stage founders…— Binance Labs Fund (@BinanceLabs) December 8, 2023
Per the disclosure, the Binance exchange has no relationship with the matter. Binance Labs Fund underscored that the license was initially pursued for the purpose of overseeing funds raised from Liquidity Providers (LPs). It mentioned that it opted to concentrate on incubating early-stage founders and startups, leading to a low fund utilization rate.
As a result, the investment firm made the decision to return the funds to LPs and cancel the license, as it became unnecessary for its current focus. Meanwhile, Binance Labs Fund used the opportunity to extend an invitation to partners and incubators worldwide to reach out to collaborate and work together.Despite the recent events involving Binance’s guilty plea and Changpeng Zhao’s resignation from Binance’s CEO position, a spokesperson clarified that the license withdrawal is unrelated to the $4.3 billion settlement.
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