Binance has decided to withdraw its cryptocurrency custody license application in Germany. This move comes as the crypto exchange faced reports of rejection from The German Federal Financial Supervisory Authority (BaFin).
Rejection by BaFin: Uncertainty Looms
On June 29, BaFin allegedly rejected Binance’s custody license application. However, at that time, the situation remained unclear as to whether the regulator verbally communicated the denial or officially rejected the application. The uncertainty surrounding the rejection raised questions about Binance’s next course of action.
Now, it has been confirmed that Binance has formally withdrawn its license application in Germany. The exchange confirmed this decision on July 26. With the rejection from BaFin and the changing regulatory landscape, Binance found it necessary to proactively withdraw its application.
Intent to Re-apply: Reflecting Regulatory Changes
However, Binance is not giving up on the German market, despite the setback. The company intends to re-apply for a license in Germany. However, this time, Binance plans to make necessary changes to its application, aligning it with the evolving regulatory environment. Adapting to the changing circumstances is crucial to secure the required licensing in Germany.
Changpeng Zhao, the CEO of Binance, emphasized the company’s commitment to become compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulations. The goal is to ensure Binance’s services can be offered seamlessly across various European countries. However, the road to European expansion hasn’t been smooth due to ongoing regulatory challenges in the United States.
Regulatory Troubles: Multi-front Investigations
Apart from Germany, Binance faces investigations from financial regulators in the United States, where it is grappling with multiple inquiries. Additionally, the company has been under investigation in France since early 2022. These regulatory hurdles have been a significant roadblock in Binance’s expansion plans and operations.
Before the withdrawal from Germany, Binance had already exited the Dutch market. The exchange failed to secure a virtual asset service provider license from Dutch regulators, leading to its departure. Moreover, Binance also made the decision to wind down its services in the United Kingdom and Cyprus.
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