Binance has decided to withdraw its cryptocurrency custody license application in Germany following rumors of regulatory rejection by BaFin.
The decision by the cryptocurrency exchange to revoke its license in Germany coincides with rumors that the exchange was turned down by regulators. Binance has withdrew its application for a German cryptocurrency custody license. The exchange advised of their withdrawal on July 26, more than a month after rumors of rejections from the German Federal Financial Supervisory Authority (BaFin) surfaced.
The custody license for the crypto exchange was apparently rejected by BaFin on June 29. However, it wasn’t apparent at the time if the regulator informed Binance directly or in writing that its application had been rejected. But Binance has now acknowledged that it has formally withdrew its application for a license.
In order to reflect the changes in the regulatory landscape, Binance plans to reapply for a license in Germany, according to a representative for the company.
“Binance confirms that it has proactively withdrawn its BaFin application. The situation, both in the global market and regulation, has changed significantly. Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.“
In order to offer its services in European nations, Binance CEO Changpeng Zhao stated that the company would concentrate on conforming to the Markets in Crypto-Assets (MiCA) laws of the European Union. However, due to its regulatory issues in the United States, its intentions to expand into Europe have suffered a setback.
Financial officials in the US have opened several probes into the cryptocurrency exchange. Since early 2022, France has also been looking at the cryptocurrency trade.
The cryptocurrency exchange left the Dutch market before leaving Germany because it was unable to obtain a license from Dutch regulators to operate as a provider of virtual asset services. The cryptocurrency exchange also submitted a request to stop operating in Cyprus and the United Kingdom.