Binance Withdraws German Crypto License Application
The decision by the cryptocurrency exchange to cancel its license in Germany coincides with rumors that regulators turned down the deal.
Binance has withdrawn its application for a German cryptocurrency custody license. On July 26, over a month after rumors of rejections from the German Federal Financial Supervisory Authority (BaFin), the exchange informed Cointelegraph of their withdrawal.
BaFin rejected the custody license for the crypto exchange on June 29. However, if the regulator informed Binance directly or in writing, it wasn’t apparent that its application had been rejected. But Binance has now acknowledged that it has formally withdrawn its application for a license.
Binance’s spokesman told Cointelegraph that the company plans to reapply for a license in Germany, with revisions reflecting developments in the legal environment:
“Binance confirms that it has proactively withdrawn its BaFin application. The situation 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. ”
To offer its services in European nations, Binance CEO Changpeng Zhao stated that the company would focus on conforming to the Markets in Crypto-Assets (MiCA) laws of the European Union. However, due to its regulatory issues in the United States, its purpose of expanding into Europe has suffered a setback.
Financial officials in the United States are conducting various investigations into the cryptocurrency exchange. Since early 2022, the crypto exchange has been under investigation in France.
Before leaving Germany, the crypto exchange left the Dutch market after failing to obtain a virtual asset service provider license from the country’s regulators. The cryptocurrency exchange also applied to terminate its operations in the United Kingdom and Cyprus.
