Binance is withdrawing the crypto license in Germany
Binance withdraws its application for a crypto license in Germany. The background is changes in the market and the regulations. Conflicts with the German financial regulator BaFin were already apparent in advance. Uniform requirements through the new law MiCA wants to use the crypto exchange to get the license soon anyway.
Why crypto exchange is withdrawing the crypto license in Germany
Binance is withdrawing its application for a crypto license in Germany – spokesmen for the world’s largest crypto exchange recently told Reuters . In August 2022, Binance submitted the application to the German financial regulator BaFin as part of a global expansion policy.
Just last month, research by FinanceFWD revealed that BaFin was planning to ban Binance from the desired license . The background to this decision is the fact that the crypto exchange does not meet the desired requirements of the financial regulator.
Binance spokespersons responded to the research and said that BaFin had some criticism of the crypto exchange’s working methods. However, there was no question of a final rejection by BaFin. Both parties continued to hold talks to find a consensus.
“Binance confirms that it has proactively withdrawn its BaFin application. The situation, both on the global market and in regulation, has changed significantly,” said the company’s spokesman.
Binance is thus alluding to the increasing regulatory severity of the crypto industry. In the USA, the largest crypto exchange is experiencing a particularly hard case. There you currently have to defend yourself against several lawsuits from supervisory authorities, whose allegations weigh very heavily.
Binance hopes for success through MiCA
The crypto exchange is withdrawing not only from Germany, but also from Cyprus and the Netherlands. Binance hopes for success through MiCA. The crypto law establishes uniform regulation of the crypto industry in the European Union.
If crypto exchange then receives the necessary license in a single country to be able to act as a crypto service provider, the company can also do business in other EU countries.
The current requirements of the German BaFin are excessively strict, explained Jonas Jiinger, manager of Binance Germany, to Blockworks. The decision was therefore made to refrain from further efforts.
The demands that have now been made could in any case become redundant again when MiCA comes into force in the coming year. In the next year and a half, Binance wants to create a situation that is in line with the specifications of MiCA.
Once this task is completed, the company wants to submit a new application for a license, which will then also create the necessary condition for crypto activities in Germany, the Netherlands and Cyprus.
“Binance still intends to apply for a corresponding license in Germany,” said a spokesman for the company. Upcoming applications are adapted to the changed state of the regulations and the market.
Binance currently has its European headquarters in the French capital, Paris. In France, the authorities also made allegations in June. Some crypto offers that Binance customers made were therefore illegal. In addition, French authorities suspect money laundering.
The official branch of the Binance Global holding company is located in the Cayman Islands.
