Binance, the world’s largest cryptocurrency exchange, has reportedly been denied a crypto custody license by Germany’s financial regulator. This rejection deals a blow to Binance’s plans for regulated business and expansion in the major European market, hindering its ability to advertise and grow its operations.
Sources familiar with the matter revealed to German financial news magazine Finance Forward that the Federal Financial Supervisory Authority of Germany (Bafin) has informed Binance of its decision not to grant the crypto custodian license. Without this regulatory approval, Binance’s business activities in Germany face significant limitations. Other crypto companies, such as Crypto.com and Uniswap, have already faced scrutiny from German regulators regarding advertising practices.
Bafin declined to provide further details, citing its policy of not commenting on individual companies. A representative from Binance stated that they are working to meet Bafin’s requirements and expressed confidence in their team and measures. The representative emphasized that discussions with regulators in Germany are ongoing.
Binance has been facing increased regulatory pressure from authorities in Europe and other jurisdictions. Belgian authorities have ordered the exchange to cease all crypto services, and French prosecutors have initiated a money laundering investigation. In June, Binance exited the Dutch market due to failure to register as a crypto service provider, applied for deregistration in Cyprus, and withdrew its U.K. authorization. The company also canceled its application for a license in Austria.
In response to the recent developments, Binance is reportedly seeking a new banking partner for euro deposits and withdrawals after payment processor Paysafe decided to discontinue support for SEPA transfers to and from the cryptocurrency exchange.
