Binance, a major cryptocurrency exchange, recently faced setbacks in pursuing licenses and regulatory approvals in Europe.
The German financial regulator, BaFin, reportedly denied Binance’s request for a cryptocurrency custody license. Binance claims to be working towards complying with BaFin’s rules.
However, it is still being determined whether they communicated this refusal through ongoing conversations or as a formal decision. In addition to the denial from BaFin, the exchange also withdrew its application for regulatory approval in Austria.
The company’s decision came after facing difficulties obtaining registration in the Netherlands and revoking its registration with the Cyprus Securities Commission.
Furthermore, the US Securities and Exchange Commission accused Binance of operating an unauthorized trading platform, leading to a suspension of its operations in Belgium.
To adapt to upcoming cryptocurrency regulations set by the European Union, Binance expressed its intention to streamline its European approach. Under the new regulation, cryptocurrency businesses can operate within a single market if they receive regulatory approval from any member country.
BaFin, adhering to strict confidentiality laws in Germany, refrained from commenting on specific companies. The situation highlights the challenges cryptocurrency exchanges face in navigating the complex and evolving regulatory landscape in Europe.
