The decision by the cryptocurrency exchange to revoke its license in Germany coincides with rumors that the exchange was turned down by regulators.
In a calculated decision, Binance has decided to withdraw its application for a German cryptocurrency custody license. Following reports of possible rejections from The German Federal Financial Supervisory Authority (BaFin) over a month ago, the exchange confirmed this choice to Cointelegraph on July 26.
The application status of Binance was initially unclear because on June 29th there were speculations that BaFin had rejected it. The cryptocurrency exchange has now made it clear that it has formally withdrawn the licensing application, nevertheless.
Unfazed, Binance is preparing to reapply for a license in Germany with crucial revisions that take into account the changing regulatory environment. Using the most recent regulatory developments as a guide, a Binance spokesman said the exchange’s intention to align its application:
"Binance declares that its BaFin application has been proactively withdrawn. Significant changes have been made in both the global market and legislation. Although Binance still plans to submit an application for the necessary license in Germany, it is critical that our submission appropriately represents these developments.
CEO Changpeng Zhao underlines the firm’s commitment to following the Markets in Crypto-Assets (MiCA) laws of the European Union in order to expand its services to numerous European nations. However, Binance’s intentions for expanding into Europe have experienced some hurdles because to the continuous regulatory issues it confronts in the US.
Financial regulators in the US are presently looking into Binance on a number of fronts, while France has also been looking into the cryptocurrency exchange since early 2022.
Binance had previously left the Dutch market before choosing to withdraw its application in Germany because it was unable to obtain a virtual asset service provider license from Dutch regulators. Additionally, the exchange has begun the process of discontinuing its services in Cyprus and the United Kingdom.
In this ever-changing regulatory environment, Binance is committed to overcoming obstacles, adapting, and growing stronger so that it can continue to influence the direction of the cryptocurrency sector. Follow Binance’s progress towards compliance and worldwide expansion to get more exciting developments!