Binance, a leading cryptocurrency exchange, has recently pulled out its application for a cryptocurrency custody license in Germany. This decision was made following reports that the exchange was facing rejection from regulators. On July 26th, Binance confirmed that it had withdrawn its application, almost a month after The German Federal Financial Supervisory Authority (BaFin) reportedly rejected it.
Binance Continues to Face Challenges in Europe
On June 29th, it was reported that BaFin, the German Federal Financial Supervisory Authority, had rejected Binance’s application for a cryptocurrency custody license. At the time, it was not clear if the rejection was official or if Binance had only been informed verbally. But Binance has now acknowledged that it has formally withdrawn its license application.
Changpeng Zhao, the CEO of Binance, has stated that the company will concentrate its efforts on complying with the European Union’s Markets in Crypto-Assets (MiCA) regulations in order to continue offering its services in Europe. However, Binance’s plans for expansion in Europe have been hindered by its ongoing regulatory issues in the United States.
In June, the CEO stated that despite an ongoing money laundering investigation in France, the country remains the company’s primary hub in Europe. Additionally, Zhao mentioned that new European Union laws, set to come into effect in 2024, will allow cryptocurrency service providers to operate across the entire EU with a single license.
Binance, a leading cryptocurrency exchange, is currently facing multiple investigations from financial regulators in the United States. In addition, the exchange has been under investigation in France since early 2022.
Prior to withdrawing its license application in Germany, Binance also left the Dutch market after failing to obtain a virtual asset service provider license from the country’s regulators. Binance has also taken steps to wind down its operations in both the United Kingdom and Cyprus. In addition, the company has decided to cease its operations in Belgium.
