Binance Calls Off Crypto License Bid in Germany
Binance has withdrawn its crypto custody license in Germany application amid regulatory challenges but plans to reapply after revisions.
Binance, the global leader in crypto exchange, recently canceled its pursuit of a crypto custody license in Germany. The crypto giant made this move just a few weeks after indications of possible disapproval from the German Federal Financial Supervisory Authority, commonly known as BaFin.
Around the end of June, BaFin allegedly expressed their intent to turn down Binance’s license application. At that time, the nature of BaFin’s response, whether official or verbal, was unclear. Now, it’s confirmed that Binance decided to pull back its application voluntarily.
Plans for License Re-application
Interestingly, Binance plans to get back on the horse and apply for the license again in Germany. The crypto exchange is looking to modify its application, adapting it to the changing global market and rules and regulations.
Compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations is at the top of Binance’s agenda. These regulations allow companies like Binance to provide their services in European countries. However, ongoing regulatory issues in the United States have posed a challenge to Binance’s expansion in Europe.
Binance Under Investigation
The crypto exchange is facing several probes in the U.S. from various financial regulatory bodies. The wave of investigations started in 2022, and France also initiated a probe into Binance’s operations.
Before the recent move in Germany, Binance pulled out from the Netherlands. They failed to secure a virtual asset service provider license from the Dutch regulators. The exchange is also in the process of winding down its operations in the United Kingdom and Cyprus.
Nonetheless, Binance recently announced that they will join the Japanese market. This could prove important for the exchange as it tries to expand in the Asian market.
Read more: Japan to Embrace Web3, Binance Plans to Enter
Despite these hurdles, Binance is determined to follow the regulations worldwide and ensure the highest level of security for its users. Its decision to withdraw the application in Germany is seen as a strategic move, allowing the crypto exchange to navigate the shifting regulatory landscape more efficiently.