Reports have emerged stating that Germany’s
financial regulator has rejected Binance’s application for a crypto custody license. If confirmed, this denial would hinder Binance’s ability to operate and expand its presence in one of Europe’s key markets, further complicating its regulatory landscape on the continent.
Bafin Denies Binance License Application, Sources Say According to sources cited by the German financial news magazine Finance Forward, the Federal Financial Supervisory Authority of Germany (Bafin) has notified Binance that it will not be granted a crypto custodial license.
Obtaining regulatory approval is crucial for Binance to conduct business in Germany, as it enables advertising and other operational activities. However, without this license, the exchange faces restrictions, as demonstrated by previous actions taken against other crypto entities by German regulators.
While Bafin declined to comment on specific companies, a spokesperson for Binance acknowledged the ongoing discussions with regulators, expressing confidence in the exchange’s team and compliance measures.
Binance Faces Regulatory Scrutiny in Europe Binance has encountered mounting regulatory challenges across Europe and beyond. In Belgium, authorities ordered the exchange to halt all crypto-related services, while in France, prosecutors initiated a money laundering investigation.
In June, Binance withdrew from the Dutch market due to registration issues, terminated its operations in Cyprus, and withdrew its U.K. authorization. Additionally, the exchange abandoned its license application in Austria.
Amidst these developments, Binance is reportedly seeking a new banking partner for euro transactions following Paysafe’s decision to discontinue support for SEPA transfers to and from the platform.
Speculation on Binance’s Regulatory Future Given the ongoing regulatory scrutiny and Binance’s recent challenges in obtaining licenses, questions arise about the likelihood of the exchange ultimately securing a crypto license from Bafin. Share your perspectives on this matter in the comments below.
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