Prominent cryptocurrency exchange Binance has canceled its application for a crypto license in Germany as regulatory scrutiny on the exchange intensifies across the continent.
According to a report by Reuters, Binance withdrew its crypto custody license application only after the German Federal Financial Supervisory Authority (BaFin) reportedly informed the exchange it would not approve the request.
However, in explaining the reasons behind this recent move, a Binance spokesman highlighted a shift in the worldwide market and regulatory conditions to Reuters.
In addition, the representative also laid out the exchange’s plans to still reapply for a crypto license in Germany.
The spokesperson said:
Binance confirms it has proactively withdrawn its BaFin (Germany’s financial regulator) application. 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,
Binance Woes In Europe
Binance has been in the news lately regarding growing regulatory issues in Europe and other parts of the world.
In June, the exchange withdrew its crypto license request in Austria while choosing to shut down its services in the Netherlands after being denied a Virtual Assets Service Provider (VASP) license in both countries.
The Seychelles-based firm has also been ordered by Belgian financial authorities to halt its digital asset services within its national borders. Meanwhile, Binance France remains under investigation by French regulators on charges of “aggravated money laundering.”
Nevertheless, it is worth stating Binance still appears committed to its European operations, having reiterated its ongoing preparation to embrace the much-anticipated Markets-in-Crypto Asset Regulations (MiCA), which are expected to take effect in Europe in 2024.
Outside Europe, the world’s largest exchange is also facing much scrutiny, with an ongoing investigation by Australian authorities. Albeit, the most popular regulatory hurdle confronting the exchange is likely the lawsuit by the United States Securities and Exchange Commission (SEC).
On June 6, the SEC filed 13 charges against Binance and its founder Chanqpeng Zhao, including fraud and illegally operating a crypto trading platform.
Total Crypto Market Cap Valued At $1.139 Trillion On The Daily Chart | Source: TOTAL Chart On Tradingview.com
Expansion Still On Amidst Regulatory Scrutiny
Despite the increasing regulatory heat on Binance, the exchange has recently announced some positive news regarding expansion.
On Tuesday, the company’s CEO unveiled plans to relaunch its services in Japan by August 2023 after pulling out of the Asian nation in 2018 after failing to obtain authorization from Japanese regulators.
In addition, the exchange will launch in Thailand in Q4 2023 as a joint venture with Gulf Innova Co. Ltd., with both parties certified as digital asset operators by Thailand’s Ministry of Finance.
