July 31, 2023

Binance Withdraws License in Germany, Intends To Reapply Again



Binance, the world’s largest cryptocurrency exchange, decided to withdraw its application from Germany after reports about rejections from the German regulator, according to Cointelegraph.

The German Federal Financial Supervisory Authority (BaFin) reportedly rejected Binance’s custody license. Binance, for its part, said it would reapply again for the license in Germany and the withdrawal came within its efforts to focus on becoming compliant with the European Union’s Markets in Crypto-Assets (MiCA) framework.

A Wall Street Journal report claimed that the BaFin urged Binance to withdraw its application amid concerns raised against its CEO Changpeng Zhao and the company’s structuring, a story which was refuted by a Binance spokesman. BaFin reportedly told the crypto exchange that its structure hampered regulatory supervision.

The spokesman said that the Wall Street Journal’s story is not accurate, adding: “Binance confirms that it has proactively withdrawn its BaFin application.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.”

It is worth mentioning that Binance is facing legal actions brought by the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) for allegedly violating securities laws and trading guidelines, respectively. Also, Binance called for the CFTC lawsuit dismissal.

Moreover, The Belgian Financial Services and Markets Authority (FSMA) has ordered Binance to halt all its crypto-related services immediately.

“The FSMA has therefore ordered Binance to cease, with immediate effect, offering or providing any such services in Belgium,” the statement read.

FSMA attributed the order to that Binance is not a member of the European Economic Area, so it is prohibited from offering or providing, within Belgium, in addition to violating the Belgian Law on the prevention of money laundering and terrorist financing.

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