YEREVAN (CoinChapter.com) — Cryptocurrency exchange Binance has withdrawn its license application in Abu Dhabi, according to a report by Reuters. This decision comes after assessing the company’s global needs and determining that the Abu Dhabi license was not necessary. Meanwhile, the stance is nothing new, as the exchange operates without a governmental license in several jurisdictions.
Binance Often Operates Without a License
Binance is already licensed in Dubai, which serves as the company’s headquarters for the Middle East and North Africa region. This move is not related to Binance’s legal settlement in the U.S., where it agreed to pay a $4.3 billion fine for anti-money laundering and money transmitter rule violations.
The global crypto exchange also recently got in trouble in the Philippines. According to the local authorities, the trading giant has been operating without a license.
Local SEC Busts Binance Philippines
The Philippines’ Securities and Exchange Commission (SEC) has issued a warning about Binance’s unlicensed operations in the country. The governmental agency is taking measures to protect the investing public from potential risks associated with the cryptocurrency exchange’s activities.
Additionally, the local SEC has announced its intention to block access to Binance in the Philippines. This decision is part of a broader effort to regulate the operations of cryptocurrency exchanges in the country.
The agency officials gave Filipino investors who have funds in Binance time to close their positions before the regulator blocks access to the platform. This move is to ensure that investors have an opportunity to safeguard their assets amid these regulatory developments.
Exchange Faces Global Legal Woes
Binance issues in the Philippines do not constitute an isolated incident. In fact, Binance operates in many regions without the required clearance, leading to it being shut down, barred, or warned by regulators in those jurisdictions.
Trouble countries include Canada, the UK, Japan, Malaysia, Singapore, Italy, Germany, the Cayman Islands, Malta, the Netherlands, and Thailand. The primary reason for these regulatory problems is Binance’s inability or refusal to obtain an operating license.
In the United States, Binance has faced significant legal issues, as CoinChapter reported previously. In November 2023, Binance’s CEO, Changpeng Zhao, stepped down and pleaded guilty to breaking US anti-money laundering laws. This was part of a settlement involving $4.3 billion in penalties and forfeitures, resolving a years-long dispute.
Binance to Exit Several European Countries
Binance Philippines bust takes a back seat compared to the exchange’s problems in other jurisdictions. It has been exiting some European countries due to similar regulatory challenges.
In detail, crypto firms operating in the European Union only need regulatory approval in one EU nation to serve all 27 countries in the single market. However, Binance faced issues in several EU countries and decided to limit its operations in Europe altogether.
These regulatory challenges reflect the increasing scrutiny and regulatory oversight that cryptocurrency exchanges are facing worldwide, as nations grapple with how to regulate the rapidly evolving digital asset space.
The situation with Binance in the Philippines is indicative of the broader challenges faced by cryptocurrency exchanges as they navigate complex and evolving regulatory environments around the world.
However, despite the legal scrutiny, and the latest Binance Philippines bust, Binance wallets remain the leading preference among different types of crypto wallets, according to a report from Coinweb.
