Germany Rejects Binance Bid to Obtain Bafin License, Sources Claim
The Federal Financial Supervisory Authority of Germany (Bafin) has informed Binance that it will not be licensed as a crypto custodian, according to sources familiar with the matter. Without regulatory approval, Binance cannot expand its business in Germany or advertise its services. German regulators have already targeted other crypto companies for this, including Crypto.com and Uniswap. Bafin declined to comment on individual companies, while Binance stated that it is working to meet Bafin requirements and is confident in its team and measures.
Main Breakdowns:
- Binance rejected for Bafin license as a crypto custodian
- Binance cannot expand business or advertise in Germany without approval
- German regulators have targeted other crypto companies for advertising violations
- Bafin and Binance decline to comment on individual companies
- Binance is confident in its team and measures to meet regulatory requirements
Binance has faced increased pressure from regulatory bodies in Europe and elsewhere. Belgium ordered the exchange to cease all crypto services, while France launched an investigation into money laundering allegations. Binance has also faced difficulties in other countries, such as exiting the Dutch market, canceling its U.K. authorization, and withdrawing its license application in Austria. Additionally, Binance is searching for a new banking partner for euro deposits and withdrawals after Paysafe discontinued support for SEPA transfers.
Hot Take:
The rejection of Binance’s bid for a Bafin license in Germany is another setback for the exchange. With increasing regulatory scrutiny and restrictions in multiple countries, Binance is facing challenges in expanding its business and maintaining its services. Finding a new banking partner for euro transactions will be crucial for the exchange’s operations in Europe. As the largest digital asset exchange, Binance needs to address these regulatory concerns effectively to regain trust and ensure its long-term success.
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