Binance May Now Leave Cyprus Amid Troubles With SEC Case
- Binance’s Cyprus subsidiary may be deregistered as a cryptocurrency service provider.
- According to the Cyprus Securities and Exchange Commission website, the exchange is being investigated for a deregistration application.
- The webpage does not explain why the change occurred.
According to the website of the country’s securities authority, cryptocurrency exchange Binance’s Cyprus unit may be deregistered as a crypto service provider.
“Binance Cyprus Limited Under examination for application for deregistration,” reads the Cyprus Securities and Exchange Commission’s website. It is unknown when the exchange sought deregistration or why it no longer wishes to do business in Cyprus.
Binance was approved as a crypto asset service provider (CASP) in Cyprus in October of last year, allowing it to provide spot, custody, staking, and card services.
“Registration in Cyprus is an important step in our European growth and is another sign of our commitment to the region. We look forward to building out our local team in Cyprus and helping to develop the local crypto ecosystem,” Binance’s then-executive vice president of Europe Martin Bruncko said.
The exchange said at the time that it was another milestone in the company’s regulatory efforts, and it followed similar registrations for Binance’s local organizations in France, Italy, and Spain. Bruncko, on the other hand, quit the company last month, according to his LinkedIn page.
The Cyprus SEC awarded Binance Cyprus Class 3 registration as a Crypto Asset Services Provider (CASP). The registration enabled the exchange to provide services such as spot, custodian, and card services in accordance with the Cyprus SEC’s anti-money laundering and counter-terrorist financing (AML/CTF) standards.
The news comes after the US Securities and Exchange Commission (SEC) sued Binance and its US subsidiary last week for allegedly breaking securities laws. The SEC then filed a request to freeze the assets of the company and its US subsidiary. However, at the recent hearing, the SEC side failed to give satisfactory answers and proof. As a result, Judge Amy Berman Jackson denied the SEC’s request, meaning that Binance.US can still operate in the US.
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