Binance Applies To Deregister In Cyprus
Binance, one of the world’s largest cryptocurrency exchanges, has applied for deregistration in Cyprus. The Cyprus Securities and Exchange Commission (CySEC) has marked Binance Cyprus Limited as “Under examination for application for deregistration” on its website. This move comes shortly after Binance received Class 3 registration as a Crypto Asset Services Provider (CASP) in Cyprus. Let’s delve into the implications and potential reasons behind Binance’s decision.
Binance had previously emphasized its commitment to regulatory compliance in Europe. In October, the exchange secured Class 3 registration in Cyprus, which granted it the highest level of service provision in the country. This registration allowed Binance to offer a wide range of crypto-related services, including custody, staking, portfolio management, and trading.
Binance’s Failure to Launch Services in Cyprus
Despite obtaining the Class 3 registration, reports indicate that Binance never actually launched its services in Cyprus. Reuters cited an unnamed regulatory body source stating that the exchange did not follow through with its plans. This raises questions about the reasons behind Binance’s decision not to utilize its registered status in Cyprus.
A spokesperson from Binance acknowledged the decision to pull back efforts in Cyprus, citing the need to prioritize compliance with upcoming regulations. They mentioned their commitment to becoming fully compliant with the Markets in Crypto-Assets (MiCA) framework when it is implemented within the next 18 months. As a result, Binance aims to redirect its resources toward fewer regulated entities in the European Union (EU), particularly focusing on larger registered markets.
Implications for Binance and the Crypto Industry
The move to deregister in Cyprus has broader implications for Binance and the crypto industry. By withdrawing from Cyprus, Binance intends to consolidate its efforts and streamline its regulatory compliance initiatives in line with upcoming regulations. This decision aligns with the crypto industry’s preparation for the implementation of the MiCA legislation within the EU, as it seeks to harmonize regulations across member states.
While Binance’s exit from Cyprus opens up opportunities for other cryptocurrency exchanges, such as Crypto.com and Gemini, to establish a presence in the country, it also reflects the increasing scrutiny faced by exchanges in regulatory environments. As the industry evolves, competition among regulated entities will intensify, with exchanges striving to comply with regulatory frameworks to ensure long-term sustainability and user trust