- BaFin rejected Binance’s application for a crypto custody license, which is the world’s largest cryptocurrency exchange.
- BaFin’s rejection hinders Binance’s advertising plans in the country. National law only allows licensed companies to advertise in the country.
- After the SEC filed a lawsuit against Binance, one of the world’s leading cryptocurrency exchanges, the exchange has faced problems in many countries in Europe.
According to knowledgeable sources, Germany’s financial regulator rejected Binance’s license application.
Germany Did Not Approve Binance
According to a report, BaFin, Germany’s financial regulator, rejected Binance’s application for a crypto custody license, which is the world’s largest cryptocurrency exchange.
The report stated that it is unclear whether the rejection is the result of an official decision taken by the Federal Financial Supervisory Authority (BaFin) or the result of an expressed intention in ongoing discussions.
BaFin’s rejection hinders Binance’s advertising plans in the country. National law only allows licensed companies to advertise in the country.
Binance Faces Problems in Europe
After the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, one of the world’s leading cryptocurrency exchanges, the exchange has faced problems in many countries in Europe.
Germany rejected Binance’s license application. Binance withdrew its application for regulatory crypto approval in Austria. Additionally, it terminated its registration with regulatory authorities in the United Kingdom and Cyprus.
It preferred to exit the Netherlands because it could not register there. Belgium ordered the exchange to cease its activities in the country. French authorities are investigating the exchange for “aggravated money laundering” charges.
Binance recently lost its banking partner Paysafe Payment Solutions, a global payment service provider, in Europe. Paysafe will cease its services to Binance in the European Economic Area (EEA) starting from September 25.
The exchange is now looking for a new European partner. It will change its provider for deposit and withdrawal services in Euros via bank transfers (SEPA).
Binance announced that it is focusing on the European market and aims to comply with MiCA regulations. The new regulation will allow crypto firms to operate in the single European market by obtaining regulatory approval in one of these markets.
According to data from research firm Kaiko, Binance’s spot trading market share reached a nearly one-year low in June 2023. Binance’s market share was 55.9% in June, which was almost the same as the previous two months. However, this month it reached its lowest point since August 2022 (53.7%) with a slight decrease.
According to Defillama, Binance still holds the largest amount of customer tokens, with reserves of $59.12 billion.
