Germany’s financial watchdog denies custody license to Binance
- Binance has been denied a custody license by Germany’s financial watchdog, BaFin.
- Binance is actively working to meet BaFin’s requirements.
- Binance has withdrawn its application for regulatory approval in Austria and has ceased registration with Cyprus’ securities regulator.
- The company decided to exit the Netherlands after a failed registration attempt and was ordered to halt operations in Belgium.
- Binance is currently facing allegations from the U.S. securities regulator for operating an unregistered trading platform.
- Binance is streamlining its European strategy in preparation for forthcoming crypto regulation by the European Union.
- The company aims to obtain regulatory approval in one of the EU markets.
- Binance is committed to collaborating with regulators and ensuring compliance with new EU rules on crypto-assets.
Despite not having a license, Binance remains a popular crypto app in Germany with a customer base of two million individuals.
Hot Take: Binance faces regulatory challenges but remains committed to compliance
Binance’s denial of a custody license by BaFin is a setback for the cryptocurrency exchange. However, the company is actively working to meet the necessary requirements and is confident in its team and measures. Binance’s decision to withdraw from several jurisdictions and streamline its European strategy shows its determination to navigate the evolving regulatory landscape. While facing allegations and scrutiny from regulators, Binance remains committed to collaborative work with regulators worldwide and ensuring compliance with new EU rules on crypto-assets. Despite lacking a license, Binance continues to be a prominent crypto app in Germany, with a large customer base.