Binance, a prominent cryptocurrency exchange, has officially withdrawn its application for a crypto license in Germany. The decision came after German regulators denied the exchange’s application back in June. A spokesperson for Binance confirmed the withdrawal and stated that the situation in both the global market and regulatory landscape had undergone significant changes since the initial application.
The German Federal Financial Supervisory Authority (BaFin) reportedly either formally denied Binance’s crypto custody license application or conveyed their decision verbally, as reported by the German-based Finance Fwd website. Despite the setback, Binance remains committed to obtaining appropriate licensing in Germany and aims to resubmit its application in line with the updated regulatory requirements.
Binance has been facing regulatory scrutiny in multiple countries lately. In the US, the exchange and its CEO have been sued by the SEC for allegedly violating US securities laws and engaging in deceptive practices. Despite the accusations, Binance and its CEO have denied any wrongdoing and remain dedicated to adhering to regulations and maintaining transparency.
Furthermore, the exchange encountered difficulties in the Netherlands, leading to its exit from the country due to failure to meet the requirements for a virtual asset service provider (VASP) license.
In addition to the challenges in Germany and the US, Binance is also the subject of an ongoing investigation by French financial regulators since 2022. The investigation is focused on suspected illegal activities related to providing services on digital assets and alleged acts of aggravated money laundering.
The regulatory pressure on Binance highlights the growing scrutiny faced by cryptocurrency exchanges worldwide as authorities seek to ensure compliance and safeguard investor interests in the rapidly evolving crypto landscape.