Having had a tough time in the US, Binance was rejected from another country where it applied for a license.
Binance received negative response from German regulators
German regulator Bafin has rejected Binance’s license application. Germany’s financial watchdog has decided not to issue a custody service license to Binance, Finance Forward reported. The report suggests that the reasons behind the negative decision are unclear. A Binance spokesperson says they have the necessary qualifications for the license and will continue to work:
While we cannot share details of our discussions with regulators, we continue to work to comply with BaFin’s requirements. As expected, this is an elaborate and ongoing process. We are confident that we have the right team and measures to continue our discussions with the regulatory authorities in Germany.
On June 26, Binance withdrew its application for regulatory approval in Austria. The exchange also waived Cyprus’ registration with the securities regulator. After an unsuccessful registration attempt, she also decided to leave the Netherlands. Meanwhile, amid the ongoing SEC litigation in the US, it was ordered to cease operations in Belgium.
Binance was one of the largest crypto apps in Germany
Stock markets are currently under pressure in many European countries, for example the Netherlands, France and the UK. The biggest player of the market, Binance, lost its licenses and had to exit the markets. As Finance Forward reported, Binance also withdrew its license application in Austria due to pressure from the regulator. In particular, the hard-hitting lawsuit recently filed by the SEC against the exchange and its founder, Changpeng Zhao (CZ), will likely complicate lawsuits around the world.
In the case of Germany, an exchange is not allowed to advertise in the country without a license. This limits the growth of stock markets. However, the rejection in Germany marks a serious setback for Binance. Because more growth will only work in the long run if the company is allowed to advertise.
Regarding the situation in Germany, Binance has this to say:
Binance remains committed to working with regulatory bodies around the world. Additionally, we are focused on preparing our business to be fully compliant with the new EU CryptoAsset Regulations (MiCA).
Exchange welcomes MiCA moderately
MiCA are European Union regulations governing crypto trading. MiCA will be effective from 30 December 2024 without restrictions. cryptocoin.com As we reported, the new EU crypto law was published in the official gazette on June 9th. Binance CEO CZ has previously reported that they will gladly support the new regulation.
In the latest development, German financial regulator Bafin rejected Binance’s application for a license in Germany. According to a Binance spokesperson, “We are confident we have the right team and measures to continue our discussions with the regulatory authorities in Germany.”
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