Germany Rejects Binance's Bid for Crypto Custody License
In an unexpected turn of events, Germany's financial regulator has dealt a blow to Binance, denying the cryptocurrency exchange a crypto custody license. This rejection not only bars Binance from expanding its presence and advertising in the major European market but also adds to the hurdles it faces in conducting regulated business on the Old Continent.
Bafin Denies Granting License to Binance
The Federal Financial Supervisory Authority of Germany (Bafin) has reportedly conveyed to Binance that it will not grant the sought-after license, as revealed by insider sources quoted in Finance Forward, a German financial news magazine.
Binance, the world's largest digital asset exchange in terms of trading volume, relies on obtaining regulatory approval to broaden its operations within Germany. The denial of the crypto custody license has significant implications, as noted in the publication. Binance will be prohibited from engaging in advertising activities, mirroring the actions taken by German regulators against other crypto companies such as Crypto.com and Uniswap.
The situation remains ambiguous, as Bafin has refrained from providing specific details regarding the matter, asserting its policy of not commenting on individual entities. However, a representative from Binance expressed their commitment to fulfilling Bafin's requirements. "While we cannot disclose the specifics of our discussions with the regulators, we remain dedicated to working towards meeting Bafin's expectations, he stated.
The spokesperson explained that it is an ongoing process and added:
"We have full confidence in our team and the measures we have implemented, allowing us to continue engaging in constructive dialogue with German regulators."
Regulatory Bodies Intensify Scrutiny
Binance finds itself under mounting pressure as regulatory bodies across Europe and other jurisdictions intensify scrutiny. The exchange was instructed by Belgian authorities to halt all crypto-related services, while French prosecutors initiated a money laundering investigation. The latest rejection by Bafin is in addition to a string of recent challenges faced by Binance, including its exit from the Dutch market, and withdrawal of applications in Austria and Cyprus.
This week, there is further trouble for the crypto exchange with the discontinuation of SEPA transfers by payment processor Paysafe, prompting the search for a new banking partner for euro deposits and withdrawals, as reported by Finance Forward.
As the crypto giant grapples with these obstacles, the big question is: Will Binance ultimately secure a crypto license from Bafin? Please share your thoughts and opinions in the comments section below.
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