26-7-2023 (BERLIN) Binance, the world’s largest cryptocurrency exchange, has decided to withdraw its application for a crypto license in Germany, signaling a potential reassessment of its expansion plans amid stringent regulatory scrutiny in the industry.
Last month, German regulators had already conveyed their decision to deny Binance a crypto custody license, as reported by Reuters.
In response to the situation, a spokesperson for Binance stated on Wednesday, “Binance confirms it has proactively withdrawn its BaFin (Germany’s financial regulator) application. The situation, both in the global market and regulation, has changed significantly.”
The spokesperson further added, “Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.”
The cryptocurrency exchange and its CEO Changpeng Zhao have faced mounting pressure following a lawsuit from the U.S. Securities and Exchange Commission (SEC), which accused Binance of operating a “web of deception.”
Binance has vehemently denied the charges brought by the regulatory body.
Beyond the challenges in the United States, the company has encountered obstacles in other regions as well. It recently had to exit the Netherlands due to non-compliance with registration requirements as a virtual asset service provider, and it is also facing an investigation in France.
