Binance Withdraws Crypto Licensing Application in Germany

Binance El Salvador License
Summary: Binance has withdrawn its custody license application in Germany. The exchange plans to reapply for a license in Germany, updating its application to reflect new regulations. CEO Changpeng Zhao emphasized compliance with European Union Markets in Crypto-Assets (MiCA) laws.

Binance has decided to abandon its application for a custody license in Germany. On July 26, over a month after rumors of rejections from The German Federal Financial Supervisory Authority (BaFin), the exchange announced its withdrawal.

Regulatory Scrutiny

According to reports, the crypto exchange’s custody license application was denied by BaFin on June 29. Whether the authority formally declined Binance’s application or just notified the firm informally was unknown at the time. Binance, however, has now said officially that it has withdrawn its licensing application.

Moreover, according to a company representative, Binance plans to reapply for a license in Germany, this time updating its application to reflect the new regulations in place.

Complying With MiCA Laws

To expand into the European market, Binance CEO Changpeng Zhao stated the company will prioritize complying with European Union Markets in Crypto-Assets (MiCA) laws. However, the company’s efforts to expand into Europe have been hampered by the difficulties it is having complying with U.S. regulations.

Multiple financial regulatory agencies in the United States are looking into the cryptocurrency exchange. In addition, French authorities have been looking into the cryptocurrency exchange since early 2022.

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The crypto exchange left the Dutch market before leaving Germany because it was unable to get a virtual asset service provider license from the country’s authorities. The cryptocurrency exchange has also requested to close its operations in the United Kingdom and Cyprus.

Pooja Bhargav