Binance Withdraws Approval In Austria Because Of Legal Pressure: Report

Key Points:

• Binance has reportedly withdrawn its application for registration with the Austrian Financial Market Authority (FMA).
• The regulator is said to have exerted pressure in the background, and the expansion of Binance in Austria has failed due to difficulties in obtaining licenses in Europe.
• Customers in Austria will not be affected by the withdrawal of the license application.

Binance has withdrawn its application for registration with the Austrian Financial Market Authority (FMA), according to a report in the German online magazine Finance Forward.

The licensing application was withdrawn some time ago, according to the exclusive information. According to the publication, the authorities are reported to have applied pressure in the background.

“We are unable to disclose details from our discussions with regulators, but we will continue to act in accordance with our commitments wherever Binance operates,” a spokesman is quoted as saying.

About a year ago, Changpeng Zhao’s (CZ) crypto exchange revealed plans to expand to Austria, establishing Binance Austria GmbH in the spring. The exchange desired a license for its subsidiary. Unfortunately, its growth in Austria has also failed.

The Austrian regulator is said to have applied pressure behind the scenes. The corporation is alleged to have established Binance Austria GmbH last year with the intention of obtaining a license for the subsidiary.

Austria joins the list of European markets from which Binance has withdrawn in recent weeks. Binance is also under more scrutiny in Europe. The US Securities and Exchange Commission is now suing the world’s biggest crypto exchange by trading volume. But, even in Europe, the stock market seems to be having difficulty securing permits.

The exchange holds Virtual Asset Service Provider (VASP) licenses in France, Italy, Spain, Poland, Sweden, and Lithuania, according to the official website. Within a month, the exchange had withdrawn or been forced to withdraw from the United Kingdom, the Netherlands, Belgium, and Cyprus.

The good news is that withdrawing the application will have no effect on Austrian consumers. If Binance had gotten the license, it would have been permitted to conduct marketing and promotional operations in the nation, among other things.

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Harold

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