Binance has withdrawn its license application with German regulator BaFin, citing changing global markets and regulations ahead of the Markets in Crypto-Assets (MiCA) bill.
The exchange said today that it would resubmit an application that, if approved, would boost its European presence in a key market ahead of new crypto laws.
Binance Rejection Rumors Circulated
Rumors of rejection by BaFin have been doing the rounds since a June report by the German website Finance Forward.
In the article, a Binance spokesperson said they were engaged in ongoing discussions with BaFin. At the time, the German regulator declined to comment.
Previously, Binance’s national head Jonas Jünger told Börsen-Zeitung, a daily financial newspaper, that BaFin’s barrier to entry was “rightly high.” In 2021, the regulator rebuked Binance for offering tokenized stocks of American companies without compliant investment prospectuses.
The retraction is the latest blow in a series of upheavals that have hampered Binance’s operations and tanked trading volumes.
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Earlier this year, an Australian payment processor said it would no longer process transactions for Binance Australia. After that, the exchange removed eight Australian dollar trading pairs and had its derivatives license canceled.
German Exit Hurts Key Market
Under MiCA rules, obtaining a license in any EU member state would allow a company to serve all EU residents. The bill is set to go into effect in late 2024.
Already, Binance has secured a license from the French watchdog, Autorité des marchés financiers (AMF), in 2022. However, the German rescission could hurt a key market where its app dominates downloads, as Finance Forward reports.
Binance could soon run into operational challenges after payment partner PaySafe recently said it would stop euro and pound sterling transactions.
Additionally, the exchange’s reputation has suffered through allegations of money laundering in France and the US.
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Source: https://beincrypto.com/binance-withdraws-german-application-market-changes/