Binance has applied to have its registration as a distributor of crypto assets revoked in its Cyprus office, as reported by the nation’s securities commission.
The commission did not provide any explanations for the application. Binance is a prominent player in the cryptocurrency industry and operates in several countries, including Cyprus, where it offers a platform for trading various digital currencies like Bitcoin (BTC) and Ethereum (ETH).
The decision to deregister Binance’s Cyprus branch as a provider of cryptocurrency services has stirred controversy within the cryptocurrency community.
The regulatory authority responsible for overseeing financial service providers in Cyprus is the Cyprus Securities and Exchange Commission (CySEC). Therefore, CySEC maintains a list of companies offering crypto asset services, and Binance’s Cyprus branch was among them.
The CySEC website reflected the company’s request to be removed from this register. Since the application did not provide any specific details, the reason behind Binance’s decision remains unknown.
As Binance holds a significant position in the global cryptocurrency market, this move has led to speculation and unease among cryptocurrency enthusiasts.
The impact of this deregistration on Binance’s business activities and its users in the country is still under determination. Binance’s decision to deregister the country’s branch coincides with a tightening regulatory landscape for cryptocurrencies worldwide.
Many countries are strengthening their restrictions on crypto asset service providers to combat illicit activities such as money laundering and fraud. It remains unclear whether these evolving regulatory developments influenced Binance’s choice.
