Binance has chosen to withdraw its cryptocurrency license from BaFin’s application in Germany because of the rising regulatory friction in Europe.
Binance, the most active cryptocurrency exchange, has withdrawn its application for a license from the BaFin, a German financial authority. This comes after German authorities told it they would not issue it a license for cryptocurrency custody.
In response to requests from regulators worldwide, the crypto exchange made this choice. In addition to its American arm being sued by regulators for operating an unauthorized exchange, the decision was made in response to its withdrawal from markets like Austria, Belgium, and the Netherlands. A spokesperson from Binance confirmed the news saying:
“The situation, both in the global market and regulation, has changed significantly. Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.”
After running into more tough regulatory situations there, Binance has continued to withdraw its license applications in several European countries. Key Binance executives in charge of expanding the business’s operations throughout Europe have either left the company or are about to do so.
Michael Wild, who, along with his team was in charge of growing the business’s operations in Germany, Switzerland, and Austria, left the biggest cryptocurrency exchange earlier this year.
Additionally, after attempting to register there without success, Binance decided to leave the Netherlands, gave up its registration with the Cyprus Securities Commission, and was given the go-ahead to cease operations in Belgium.
Chief Executive Officer Changpeng “CZ” Zhao said earlier in June that France remained Binance’s flagship site in Europe despite a money laundering investigation.
