Binance has made a significant move in its quest to expand its European operations by withdrawing its application for a cryptocurrency license in Germany. The decision comes after allegations that the German Federal Financial Supervisory Authority (BaFin) rejected their custody license application on June 29, 2023.
Initially, there was uncertainty surrounding the nature of the rejection, with doubts about whether it was communicated verbally or through official written correspondence. However, the exchange has now clarified that it has voluntarily withdrawn its BaFin application.
On July 26, 2023, a Binance spokesperson confirmed the exchange’s withdrawal from the licensing process. The spokesperson, however, noted that the exchange intends to reapply for the license and would make necessary amendments that align with the recent changes in the regulatory landscape to ensure a successful application.
The spokesperson acknowledged the evolving global market conditions and regulations for cryptocurrency exchanges and noted that Binance recognizes the importance of accurately reflecting these changes in its license application.
Notably, Binance has been largely unsuccessful in its drive to expand its presence in the European markets. Prior to exiting Germany, the exchange withdrew from the Dutch market after failing to secure a virtual asset service provider license from Dutch regulators.
Also, the Cyprus Securities and Exchange Commission (CySEC) recently announced that Binance Cyprus Limited is under examination for application for deregistration. The United Kingdom Financial Conduct Authority (FCA) also announced that Binance Markets Limited can no longer provide regulated activities and products in the country.
Despite these obstacles, Binance reaffirmed its commitment to meeting regulatory requirements and obtaining necessary licenses to continue its operations and expansion in European and global markets. Changpeng Zhao, Binance’s CEO, stated that the exchange will prioritize compliance with the Markets in Crypto Assets (MiCA) legislation to effectively offer its services in European countries.
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