Binance, the world’s largest crypto exchange seems to have trouble standing up to its image amid the increasing scrutiny against it. Now, Binance is ready to clear its shelves in Germany as the regulator denied the exchange the license to operate.
According to local media reports, Binance had to withdraw its cryptocurrency custody license application in Germany. The exchange confirmed its withdrawal on Wednesday, nearly a month after reports of rejections from The German Federal Financial Supervisory Authority (BaFin).
On June 29, BaFin reportedly rejected the crypto exchange’s custody license. However, at the time, it was unclear whether the regulator officially denied Binance’s application or if it verbally informed the company.
Hence, with the recent release of information, Binance has now confirmed that it has formally withdrawn its license application. A spokesperson from Binance told media that it intends to re-apply for a license in Germany, with changes to its application reflecting the changes in the regulatory environment.
Binance confirms that it has proactively withdrawn its BaFin application. 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.
Before its withdrawal from Germany, the crypto exchange also exited the Dutch market after failing to secure a virtual asset service provider license from regulators in the country. The crypto exchange also applied to wind down its services in the United Kingdom and Cyprus.
Binance CEO Changpeng Zhao said it would focus on becoming compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulations to offer its services in European countries. However, its European expansion plans have taken a setback amid its regulatory troubles in the United States.
The troubles have been on a remarkable increase following the lawsuit from SEC in June. The US SEC has filed 13 charges against the exchanges for commingling users’ funds and operating without a license. Simultaneously, the French authorities revealed that the exchange has been under investigation since February 2022 for operating without a license. All this shows the increasing pressure on the company which has resulted in losses, layoffs and significant outflows.