The embattled cryptocurrency exchange, Binance has reportedly withdrawn its application for a crypto license in Germany, signifying the tough regulations and legal challenges it is facing in expanding operations in Europe.
Finance Magnates reported in June, citing insiders at BaFin who spoke with Fast Forward, that the German regulator was unwilling to grant Binance a license for crypto custody services. The crypto giant had hoped to make Germany a new hub in Europe by obtaining the license.
Binance Cites Market Sentiment
According to the sources who shared information with Coindesk, the crypto exchange confirmed that it had withdrawn the application due to the situation in the global market and the changes in crypto regulations. However, the exchange said it was planning to reapply for the license after considering the prevailing market conditions.
Elsewhere, Binance transferred its users in the Netherlands to a rival crypto exchange, Coinmerce, and ceased operations in the country on July 17. The exchange made the decision after failing to obtain a virtual asset service provider (VASP) license from the Dutch regulator. The transfer of users made Coinmerce, a regulated cryptocurrency exchange in the Netherlands, one of the largest crypto operators in the region.
Similarly, Binance filed an application with the Cypriot regulator in June to deregister its subsidiary in the country. Although the regulator, the Cyprus Securities and Exchange Commission, did not specify why Binance was exiting the country, a spokesperson from the exchange said the company was planning to focus on "fewer regulated entities in the EU."
France, Cyprus, and the US
In France, Binance is facing an investigation looking into allegations of illegally offering digital asset services and implementing inadequate controls to prevent money laundering. According to the French authorities, Binance allegedly facilitated investment transactions that concealed suspected money laundering activities.
Additionally, Binance and its Co-Founder Changpeng Zhao are facing 13 charges from the Securities and Exchange Commission for allegedly violating the laws governing the US securities regulations. Besides that, Binance and Zhao were sued by the Commodities Futures Trading Commission (CFTC) in March.
Two days ago, the exchange disclosed plans to seek a dismissal of the charges brought by the CFTC in response to the complaint expected to be submitted on July 27. The regulator is accusing the exchange of violating federal regulations related to the issuance of commodities.
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This article was written by Jared Kirui at www.financemagnates.com.
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