Binance’s European exodus continues as exchange withdraws critical license application in Germany Binance’s European exodus continues as exchange withdraws critical license application in Germany
Over the past month Binance has exited markets in five European nations over its failure to secure necessary licensing.
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Updated: Jul. 26, 2023 at 4:28 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance confirmed to CryptoSlate that it had withdrawn its crypto custody license application in Germany, according to a July 26 emailed statement.
In June, unconfirmed reports emerged that BaFin, Germany’s top financial regulator, intended to deny Binance’s application for a crypto custody license. At the time, a representative from the exchange told CryptoSlate that it was in contact with regulators from the country.
Less than a month later, the exchange withdrew its license application because “the situation, both in the global market and regulation, has changed significantly.”
The exchange’s spokesperson told CryptoSlate that the firm intends to reapply for the appropriate licensing, adding that the new application would adequately reflect the changes in the market.
“Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.”
Binance did not provide further information about when it plans to reapply for the licensing.
Binance EU regulatory woes
The withdrawal from Germany marks another setback for the exchange’s effort to gain a foothold in Europe, where it has withdrawn from the Netherlands, Austria, Cyprus, and the U.K. in the past month over its failure to get regulatory approval.
A spokesperson for the firm previously told CryptoSlate that the exchange is focused on complying with the forthcoming Markets in Crypto Assets (MiCA) regulations to offer its services in Europe.
Ilir Laro, the sub-regional manager for growth in the U.K. and Europe, said the firm has five regulated entities within the region, including France, Italy, Spain, Poland, and Sweden.
It should be noted that the firm is currently being investigated in France for “aggravated money laundering” and illegally providing services to French users between 2020 and 2022.
Meanwhile, Binance is also facing regulatory struggles in the U.S. Two leading financial watchdogs, the CFTC and SEC, are suing Binance, its principal subsidiaries, and its CEO, Changpeng Zhao. The former is suing over alleged violations of the Commodity Exchange Act, among other CFTC regulations, while the latter is bringing charges of several securities law violations.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.