In a recent development, the financial watchdog of Germany, the Federal Financial Supervisory Authority (BaFin), has reportedly denied a custody license to Binance. This information comes from a report by Finance Forward. The nature of this denial, whether formal or expressed intention, remains unclear, adding to Binance’s regulatory challenges in Europe.
One of the biggest cryptocurrency exchanges in the world, Binance, has been actively looking for regulatory approval across the globe. The company’s efforts to comply with regulations, though, lately encountered obstacles. It renounced its registration with Cyprus’ securities commission as well as its request for regulatory approval in Austria. Binance also decided to leave the Netherlands after trying in vain to register. Additionally, the business was given the go-ahead to stop operating in Belgium, and the US securities authority is currently accusing it of running an unlicensed trading platform.
An official from Binance responded to BaFin’s refusal to provide the custody license by expressing the company’s dedication to following all legal criteria. Binance expressed confidence in its team and procedures for ongoing discussions with German authorities. However, it couldn’t provide details of its interactions with regulations. BaFin refuses to comment on specific businesses, citing German laws requiring professional discretion.
In anticipation of the imminent crypto legislation in the European Union (EU), Binance has announced that it is restructuring its European approach. The Markets in Crypto-Assets (MiCA) rule, after regulatory approval in one member state, enables EU-wide operations for crypto companies. Binance’s spokesman reiterated their commitment to collaborate with regulators globally. They emphasized achieving full compliance with upcoming EU legislation on crypto-assets.
The outcome of Binance’s negotiations will impact the cryptocurrency exchange sector and regional regulations. Binance aims to overcome regulatory obstacles and make operational adjustments across Europe.