Binance’s Crypto License Denied: Germany Rejects Request
• Germany’s financial regulator has rejected Binance’s request for a crypto custody license.
• Binance is facing regulatory trouble across Europe, in addition to the U.S.
• Binance recently lost its European banking partner Paysafe Payment Solutions, a global payment service provider.
Germany Rejects Binance’s Crypto License Request
Germany’s Federal Financial Supervisory Authority (BaFin) has reportedly rejected cryptocurrency exchange Binance’s request for a crypto custody license. The rejection hampers the exchange’s advertising plans in the country as only licensed firms are allowed to advertise there according to national law.
Binance Facing Regulatory Trouble Across Europe
The SEC filing a lawsuit against Binance has had far-reaching consequences for the exchange across Europe, with Austria rejecting its regulatory crypto approval and it also giving up registration with regulatory bodies in the United Kingdom and Cyprus as well as quitting operations in the Netherlands after failing to register there and Belgium ordering it to suspend operations too. French authorities have further investigated them on “aggravated money laundering” charges.
Binance Loses European Banking Partner
Compounding issues, global payment service provider Paysafe Payment Solutions has announced that it will halt its services to Binance across the European Economic Area (EEA), beginning 25 September, leaving them searching for another European partner for their Euro-denominated deposit and withdrawal service via bank transfer (SEPA).
Binance Focusing On Compliance With MiCA Regulations
Despite these challenges, Binance declared its focus on becoming compliant with the Market’s Crypto Assets (MiCA) regulations throughout the single European market by winning regulatory approval in one of those markets. Data from research firm Kaiko shows that their spot trading market share hit near a one-year low in June 2023.
Binace is currently facing numerous regulatory hurdles across Europe along with other issues such as losing their banking partner Paysafe Payment Solutions and their declining spot trading market share hitting a one year low. Despite this they remain focused on compliance with MiCa regulations throughout Europe by winning approval from regulators in one of those markets and remaining committed to their goal of expanding into new areas within the continent despite significant challenges ahead