Binance Applies for Deregistration in Cyprus Amid Legal Issues in the US
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Summary: Binance has applied to be deregistered as a Crypto Asset Service Provider in Cyprus due to legal issues in the US. The exchange has committed to following anti-money-laundering and counter-terrorist financing laws in Cyprus. A federal judge has requested a mediation session between Binance and the U.S SEC.
Binance, the biggest cryptocurrency exchange in the world, has applied to be deregistered as a Crypto Asset Service Provider in Cyprus due to legal issues in the United States. There was no explanation for the deregistration request on the official website of Cyprus’ securities regulator.
Avoiding Another Lawsuit?
Binance’s motivations for deregistering in Cyprus remain unclear. In the meanwhile, the exchange officially confirmed its SEC registration in October 2022. According to reports, the largest exchange did not launch its operations in Cyprus. Binance, meanwhile, has not commented on the move.
Moreover, Binance was able to provide its services in Cyprus, including spot trading, custody, and others. The crypto exchange has committed to following the anti-money-laundering and counter-terrorist financing laws of the country.
Ongoing Tussle with U.S SEC
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are engaged in a legal battle with the cryptocurrency exchange and its management. Binance Entities and its CEO, Changpeng Zhao (CZ), face 13 accusations from the commission. The US SEC has charged the cryptocurrency exchange with breaking the law by providing securities without first having them registered.
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According to the most current court documents, a federal judge has requested a mediation session between Binance, its US subsidiary, and the commission. Binance.US said that the case would be futile if its assets were frozen, and that the company could continue operations via negotiation. The court denied SEC’s plea to freeze Binance U.S assets recently.
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