HomeNewsBinance Pulls Back from Germany: License Application Withdrawn

Binance Pulls Back from Germany: License Application Withdrawn

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  • Binance has withdrawn its application for a license from Germany’s financial regulator, BaFin.
  • This decision follows Binance’s retreat from other markets, including Austria, Belgium, and the Netherlands, and a lawsuit by US regulators.

Cryptocurrency exchange titan Binance has retracted its application for a license from BaFin, Germany’s financial regulatory authority. The company confirmed this move to CoinDesk, marking another chapter in the firm’s recent series of retreats from global markets.

A Change in Plans amid Global Market Shifts

This decision aligns with Binance’s recent actions, including the withdrawal from Austria, Belgium, and the Netherlands, and comes amidst a lawsuit from US regulators accusing the company of operating an unregistered exchange.

A Binance spokesperson conveyed to CoinDesk via email,

“Binance confirms that it has proactively withdrawn its BaFin application.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.”

Waves of Regulatory Scrutiny

In June, Finance Forward hinted at the possibility of BaFin denying Binance a license based on insider information. However, a Binance spokesperson maintained that discussions with officials were ongoing at that time.

Binance’s regulatory challenges extend beyond Germany. The exchange relinquished its registration with Cyprus’ securities regulator and decided to exit the Netherlands after a failed registration attempt. Furthermore, it faced an operational halt order in Belgium.

Despite these setbacks, Binance CEO Changpeng “CZ” Zhao stated in June that France continues to be Binance’s European anchor, despite an ongoing money laundering investigation in the country. Additionally, Zhao cited incoming European Union laws slated for 2024, which will permit crypto service providers to operate throughout the EU with a single license.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628