Crypto Exchange Binance Drops Crypto License Pursuit in Germany

• Binance has already stated its intent to adhere to the forthcoming MiCa law in the EU.
• Numerous European authorities are undertaking their own investigations against Binance.

Binance, the world’s largest crypto exchange, has decided not to pursue a license from BaFin, Germany’s financial watchdog. Earlier, German authorities notified it that they would not provide a cryptocurrency custody license, leading to this decision. In response to scrutiny from authorities all across the globe, Binance has likely implemented this change.

Possible reasons for the decision include legal action taken against its U.S. branch and mending things to comply with the MiCA laws. Binance has already stated its intent to adhere to the forthcoming Markets in Crypto Assets (MiCA) law in the European Union.

A representative from Binance stated:

“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.”

Rising Global Scrutiny

Binance has proceeded to withdraw its license applications after encountering significant regulatory obstacles throughout Europe. Even before the U.S SEC accused the cryptocurrency exchange earlier this month, the agency had reached out to financial authorities in numerous EU states for further information on Binance. However, based on accusations of misconduct, numerous European authorities are undertaking their own investigations against Binance.

In addition, after attempting registration in the Netherlands and failing, Binance decided to leave the country, canceled its registration with the Cyprus Securities and Exchange Commission, and suspended operations in Belgium.

Binance is still active in Europe. The exchange has its European headquarters in Paris after registering with the French regulator AMF over a year ago. The business’s holding company is located in the Cayman Islands.

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