29-6-2023 (BERLIN) Binance, the world’s largest cryptocurrency exchange, has faced another setback as German regulators have informed the company that it will not be granted a cryptocurrency custody license, according to a source familiar with the matter. This refusal from regulators adds to the growing list of challenges Binance has encountered recently.
Regulators from various countries have been increasing pressure on Binance. In a recent development, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao, accusing them of creating a “web of deception” to evade U.S. laws. Binance has vehemently denied these allegations.
Germany’s regulatory authority, BaFin, declined to comment on specific companies due to confidentiality reasons. Binance, on the other hand, stated that it would not disclose the details of its discussions with regulators but assured that it is actively working to comply with BaFin’s requirements. The exchange described the process as detailed and ongoing, expressing confidence in its ability to engage in further discussions with German regulators.
The news of the denial of the German license was initially reported by Finance Forward.
Binance has been facing mounting problems in recent weeks. The Financial Services and Markets Authority (FSMA) of Belgium recently ordered Binance to cease offering any virtual currency services within the country. Additionally, France has launched an investigation into Binance, while the exchange has decided to exit the Dutch market due to its inability to meet registration requirements as a virtual asset service provider.
BaFin had previously warned Binance in 2021 that it risked facing fines for offering certain digital tokens to clients in Germany without providing the necessary information.
