Crypto Exchange Binance Considering Withdrawal from Germany Following License Application Rejection

Crypto exchange Binance halts license application

In a recent email communication with CoinDesk, Binance confirmed that it has withdrawn its application for a license. The German regulatory authority, BaFin, had refused to grant Binance a license at the end of June, but the cryptocurrency exchange was not ready to give up at that time.

“Binance confirms that it proactively withdrew its application for a license from BaFin. The global crypto market and regulatory landscape have undergone significant changes. Binance still intends to obtain a license from BaFin, but it is crucial that our application reflects these changes.”

According to Binance, it appears that the exchange is not ready to leave Germany just yet; instead, it plans to reapply for a license in the future. The specific details about the changes remain unclear. However, numerous countries have been implementing stricter regulations for crypto businesses, which Binance seemed to recognize was lacking in their previous operations in Germany.

Regulatory hurdles for Binance

Many new requirements have been implemented in recent times, especially with the impending enforcement of the Markets in Crypto-Assets Regulation (MiCAR) legislation from the European Union in Germany. This legislation will impose stringent registration requirements, customer fund protection measures, and surveillance protocols.

Being a global crypto exchange, Binance needs to comply with varying policies worldwide. It was recently revealed that registration with the Dutch Central Bank (DNB) is quite costly for crypto companies. This was a contributing factor that led the Dutch trading platform, LiteBit, to shut down its operations.

Given that Binance operates in numerous countries, managing all the necessary licenses could be even more expensive. Last year, Binance was fined millions for failure to register in the Netherlands.

Tags: Binance, Germany, Exchange, Regulations