Germany’s financial regulator has refused to grant Binance a crypto custody license, according to a media report. A rejection would prevent the exchange from advertising and growing in the major European market and deal another blow to its efforts to do regulated business on the Old Continent.
Germany Rejects Binance Bid to Obtain Bafin License, Sources Claim
The Federal Financial Supervisory Authority of Germany (Bafin) has informed Binance it will not be licensed as a crypto custodian, the German financial news magazine Finance Forward revealed in a report quoting sources familiar with the matter.
The digital asset exchange, the world’s largest by trading volume, can only expand its business in Germany if it receives the regulatory approval, the publication noted. Without it, it’s not allowed to advertise, for example, and German regulators have already targeted other crypto companies for that, including trading platforms like Crypto.com and Uniswap.
Bafin declined to clarify the situation with a spokesperson saying the authority does not comment on individual companies. “While we cannot share details of our discussions with regulators, we are continuing to work to meet Bafin requirements,” a representative of Binance was quoted as stating. The spokesperson emphasized this is an ongoing process and also said:
We are confident that we have the right team and the appropriate measures in place to continue our discussions with the regulators in Germany.
has been under increased pressure from regulatory bodies in Europe and elsewhere. Authorities in Belgium ordered the exchange to cease all crypto services while prosecutors in France launched an investigation based on money laundering allegations.
Earlier in June, Binance exited the Dutch market, after failing to register as a crypto service provider, applied for deregistration in Cyprus, and cancelled its U.K. authorization. The company also withdrew its application for license in Austria, Finance Forward noted.
This week, news came out that the exchange is looking for a new banking partner for euro deposits and withdrawals after payment processor Paysafe announced its decision to discontinue support for SEPA transfers to and from the cryptocurrency exchange.
Do you think Binance will eventually acquire a crypto license from Bafin? Share your thoughts on the subject in the comments section below.