CryptoCurrency

Binance Withdraws Crypto License Application in Germany: Tough Laws Take Their Toll

Binance Cancels Its German Cryptocurrency Licence Application

Binance, a cryptocurrency exchange in the centre of controversy, has reportedly abandoned its bid to obtain a crypto licence in Germany due to the country’s stringent regulatory environment.
According to sources at BaFin who spoke with Quick Ahead, it was revealed in June by Finance Magnates that the German regulator was unwilling to offer Binance a licence for crypto custody services. By obtaining the licence, Binance’s original goal was to make Germany its new European headquarters.
Binance has confirmed its withdrawal of application, according to information supplied with Coindesk by sources, due to changes in crypto regulations and the present global market. The firm further stated that it would reevaluate the market and submit a new application for the licence.
In addition, Binance had to move its customers in the Netherlands to a rival business, Coinmerce, and ceased operations in the nation on 17 July, after it failed to get a digital asset service supplier (VASP) licence from the Dutch government.
One of Europe’s leading cryptocurrency exchanges, Binance, planned to establish a German base there. However, the company has chosen to rescind its application in light of recent developments in crypto regulations and the global market. According to our sources, the German financial regulator BaFin’s reluctance to provide a custody licence was a major element in this case.
In addition, French authorities are probing Binance for allegedly helping customers trade digital assets while taking insufficient precautions to thwart the laundering of illicit funds. In addition to allegations from the SEC and CFTC, the company and its co-founder, Changpeng Zhao, are also under investigation. That’s why on July 27 Binance will file a complaint with the CFTC to get the charges against it dropped.

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