Binance, which is the biggest cryptocurrency exchange in the world, has pulled out its application to register with German banking regulations.
The crypto market leader has been trying to get into the European market.
The crypto exchange’s spokesperson said that they were sad about the change in regulations around the world and that they planned to reapply for the German license.
Binance has taken down its BaFin programme on its own. Changes have happened to global markets and rules. Binance will apply for a German license, but it must take these changes into account.
Germany’s Federal Financial Supervisory Authority (BaFin) was rumoured to reject Binance’s crypto custody license application in June. Even though they talked to each other, they seemed to have given up trying to get approval.
This is the most recent legal problem for the company. Last month, the Securities and Exchange Commission sued Binance for a “web of deception.”
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Binance and its European troubles
Germany’s financial regulator, BaFin, told Binance that it would not give the exchange a crypto storage license. BaFin is in charge of keeping an eye on banks, financial services institutions, insurance companies, and stock exchanges.
The exchange is also having trouble in other places in Europe, such as the Netherlands, where it was allegedly forced to leave because it did not meet the registration requirements to work as a virtual asset service provider. In France, too, the company is being looked into.
The company hasn’t confirmed or denied the story, but it is said to have said that while it can’t share details of conversations with regulators, it is trying to meet BaFin’s standards.
Binance has also taken back licence applications in Austria, the Netherlands, and Cyprus. It also broke up with its European banking partner, PaySafe, last month. It is also being looked into by French officials, who have accused the Bitcoin company of “acts of aggravated money laundering.”
Binance has said in the past that it is ready to follow the European Union’s Markets in Crypto Assets (MiCA) legislation, which is on the horizon. Still, the company has had to leave big countries in Europe and beyond.
According to former employees and private business correspondence obtained by the publication, Binance cut some employee benefits in June as part of a re-evaluation of the company. The exchange focused on the “current market environment and regulatory climate,” which led to a drop in profits. It also hinted that other cost-cutting steps would be taken.
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About BaFin
The Federal Financial Supervisory Authority of Germany is called BaFin, which is an abbreviation for “Bundesanstalt für Finanzdienstleistungsaufsicht” in German. Its main job is to regulate and watch over Germany’s financial institutions and markets.
Its main goal is to make sure that the German financial system is honest, stable, and runs smoothly. Investors, bank customers, and people with insurance plans should be able to trust the financial system.