BaFin Denies Binance’s Custody License Application, Paysafe to End Support
- Germany’s financial regulator, BaFin, has reportedly denied Binance’s application for a custody license.
- It is unclear whether BaFin’s denial was a formal decision or an intention to deny.
- Binance is working to comply with BaFin’s requirements and remains confident in its team and measures.
- Paysafe, Binance’s current euro banking partner, will stop supporting the crypto exchange after September 25.
- Paysafe’s decision follows a strategic review and will impact euro-denominated bank transfers to and from Binance.
- Binance will be changing the provider for EUR deposits and withdrawals via Bank Transfer (SEPA) and has assured customers that no other fiat currencies or services are affected.
- Users will need to update their banking details and may be required to accept new terms and conditions after September 25.
Binance’s Regulatory Woes and Commitment to Compliance
- Binance has faced regulatory challenges in various countries, including the Netherlands, Cyprus, France, Belgium, and Austria.
- The exchange is focused on becoming fully compliant with the new EU rules on crypto-assets (MiCA).
- Binance and its CEO, Changpeng Zhao, are facing a lawsuit from the SEC in the United States, which has put pressure on the exchange.
- Binance’s native cryptocurrency, BNB, has seen a significant decrease in value since the lawsuit was announced.
- Coinbase is also facing a lawsuit from the SEC.
