The days pass and look alike for Binance in recent weeks. The list of crypto exchange regulatory issues continues to grow. Already struggling with the SEC, suspected of money laundering in France, and having been unable to obtain a license in the Netherlands and Belgium, Binance has also just been refused the custody license in Germany. The German financial regulator has decided to deprive the CZ exchange of this authorization, even if Binance has not yet laid down its arms.
No custodial license for Binance!
Bad weather for Changpeng Zhao’s crypto exchange! Binance, which was recently banned from all crypto-related activity, has just experienced another failure in Europe. As Finance Forward revealedthe world’s largest crypto exchange, failed to comply with the regulatory requirements of BaFin, Germany’s federal financial supervisor.
Obviously too “high” requirements for Binance, as Jonas Jiinger, Managing Director of Binance Germany, recognizes. The crypto exchange could not meet BaFin requirements regarding money laundering and terrorist financing and was therefore denied the custody license.
While Binance can still continue to offer its services in Germany, the exchange cannot advertise in the country without this permission. This failure will therefore strongly hinder the development of Binance across the Rhine.
A failure, but Binance does not lay down its arms
Despite the refusal of the German financial regulator, Binance does not despair. The crypto exchange, which is still continuing discussions with the financial regulator, believes in its chances and hopes for a favorable outcome.
“While we cannot disclose details of our discussions with regulators, we will continue to work to meet BaFin’s requirements. It is an ongoing process. We are confident that we have the right team and the necessary measures in place to continue our discussions with regulators in Germany,” said a Binance spokesperson.
The CZ exchange also spoke out following this refusal. Binance affirmed that it “remains committed to working collaboratively with regulators around the world” and is doing its utmost to be “fully compliant with the new EU Cryptocurrency Rules (MiCA).
As a reminder, the MiCA regulation recently approved by EU member states governs the operation of crypto firms in Europe. The entry into force of this law is scheduled for 2024.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
