Binance Cyprus Unit Applies for Deregistration as Crypto Service Provider.
Binance’s Cyprus unit has officially applied to be removed from Cyprus’ register of crypto asset service providers, as per information obtained from the securities regulator website on Wednesday.
The company’s move, as stated by Binance, is intended to enable a shift in focus towards its larger European businesses. Moreover, this strategic decision aligns with Binance’s plans to prioritize and allocate resources to its European operations.
Uncertainty Surrounding Deregistration Application
The exact timing of Binance Cyprus deregistration application remains uncertain.
Although the world’s largest exchange announced its registration with the Cyprus Securities and Exchange Commission back in October 2022, reports suggest that it never commenced its business operations in Cyprus. A regulator source revealed on Wednesday that Binance failed to launch its business in the country.
Cyprus Registration Facilitated Compliance, Binance’s Strategic Decision to Focus on EU
However, Binance’s registration in Cyprus had previously enabled the exchange to offer various services, including spot trading and custody, while complying with Cyprus’s anti-money laundering and counter-terrorist financing regulations. The exchange had highlighted this compliance on its website.
In response to the upcoming European Union crypto asset regulations (MiCA), a spokesperson for Binance explained the company’s strategic decision to withdraw from Cyprus. The spokesperson emphasized that Binance is diligently preparing its business for full compliance with MiCA within the next 18 months.
As part of this preparation, Binance has chosen to concentrate its efforts on a smaller number of regulated entities, all within the European Union, particularly focusing on well-established markets. This includes France, Italy, and Spain, where the company already has a mature footprint. The spokesperson reiterated Binance’s commitment to adhering to applicable laws in the European Union.
Ongoing Legal Battles and Binance’s Response
Recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, their founder Changpeng Zhao, and the operator of its supposedly independent U.S. exchange. In response, Binance affirmed its strong intention to vigorously defend itself against the charges brought by the SEC.
Nevertheless, Binance proudly announced on its website that it currently holds licenses and registrations across six European Union states. This underscores the exchange’s commitment to maintaining a strong presence within the European market.