Kofi Mensah Binance, the world’s largest digital asset exchange, has decided to withdraw its application for a crypto custody license in Germany. The company clarified that it remains committed to obtaining regulatory approval in the Federal Republic, but it wants to revise its application to better align with the changing market and regulatory landscape.
The move to withdraw the application comes after reports from about a month ago revealed that Germany’s Federal Financial Supervisory Authority (Bafin) had informed Binance that it would not receive the crypto custodian license. This decision seems to be influenced by the challenging regulatory environment the exchange is currently facing.
A spokesperson for Binance stated that the company still plans to apply for the necessary licensing in Germany. However, they emphasized the importance of ensuring that their updated submission accurately reflects the recent changes in the industry and regulatory conditions.
Binance has been encountering increased regulatory scrutiny worldwide. In the United States, it faced lawsuits from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over alleged violations of securities and derivatives laws. Additionally, the exchange has encountered challenges in Europe, with authorities in Belgium ordering the suspension of its crypto services and French prosecutors launching a money laundering investigation.
Despite the withdrawal of the application in Germany, Binance has been actively reassessing its operations in various countries. It exited the Dutch market in June due to non-registration as a crypto service provider, initiated deregistration in Cyprus, canceled its authorization in the United Kingdom, and withdrew its license application in Austria.
As for the question of whether Binance will resubmit its application for a German crypto license in the future, it remains uncertain. The company’s spokesperson expressed intentions to apply again, but their decision may depend on how the regulatory landscape evolves and how they can adapt their application accordingly.
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Frequently Asked Questions (FAQs) about crypto regulation
Q: Why did Binance withdraw its application for a German crypto custody license?
A: Binance withdrew its application due to the changing market and regulatory conditions. The company plans to revise its submission to better reflect these developments.
Q: Is Binance giving up on obtaining regulatory approval in Germany?
A: No, Binance is not giving up on obtaining regulatory approval. Despite the withdrawal, the company still intends to apply for appropriate licensing in Germany in the future.
Q: What challenges has Binance faced in other jurisdictions?
A: Binance has faced challenges in various jurisdictions. In the US, it was sued by the SEC and CFTC for alleged violations of securities and derivatives laws. Additionally, it encountered issues in Belgium and France due to orders to cease services and a money laundering investigation, respectively.
Q: How has the regulatory environment impacted Binance’s operations in Europe?
A: The regulatory environment has posed difficulties for Binance’s expansion in Europe. The company withdrew from the Dutch market, applied for deregistration in Cyprus, canceled its UK authorization, and withdrew its license application in Austria.
Q: Will Binance resubmit its application for a German crypto license?
A: While Binance expressed intentions to apply again, whether it will resubmit its application depends on how the regulatory landscape evolves and its ability to adapt the submission accordingly.
More about crypto regulation
- Reuters: “Binance Withdraws Its Crypto License Application in Germany” (https://www.reuters.com/technology/binance-withdraws-its-crypto-license-application-germany-2023-06-28/)
- Finance Forward: “Germany’s Federal Financial Supervisory Authority Informs Binance About License Decision” (Link not provided, as it was cited as a source in the text)
- Coindesk: “Binance Withdraws Its Bafin Application for a German Crypto License” (https://www.coindesk.com/markets/2023/06/28/binance-withdraws-its-bafin-application-for-a-german-crypto-license/)
3 comments
binance withdrawin its crypto license? oh no, they must b facin sum real tuff times wit all dem regulators on their bac. hopin they sort it out n get back on track soon!
dang, binance pullin outta germany’s licensin process? wonder wat happened. but hey, they ain’t givin up, plannin to reapply wit changes. fingers crossed for ’em!
regulatory hurdles r no joke for binance. they got sued in d US, facin issues all ovr europe. germany’s a tough nut 2 crack, but hope they get through this rough patch.