Binance Was Denied Custody License In Germany: Report

Key Points:

  • Binance denied a custodial license in Germany, unclear if formal decision.
  • The exchange faces regulatory challenges and investigations in multiple countries.
  • SEC lawsuit accuses the exchange of violating securities rules and evading regulation.
Binance was developing its own license in Germany and planned to grow with it, but Germany’s financial authority has opted not to award Binance a custodial license, according to the news journal Finance Forward on Thursday, citing persons familiar with the subject.
Binance Denied Depository License In Germany: Report

According to the article, it is unclear if the refusal was a formal decision made by the Federal Financial Supervisory Authority (BaFin) or an intention indicated during continuing conversations.

According to a BaFin representative, the authority does not comment on specific enterprises. Meanwhile, a spokesman for Binance stated:

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“While we cannot share details of our discussions with regulators, we are continuing to work to meet BaFin requirements. It is an ongoing process. We are confident that we have the right team and the appropriate measures in place to continue our discussions with the regulators in Germany.”

Moreover, corporate partners are pulling away, including the European banking partner Paysafe, according to Reuters. The news comes as Binance, the world’s biggest crypto exchange by trading volume, has been chastised by banking authorities in Europe and the United States.

Binance Denied Depository License In Germany: Report

The new lawsuit brought by the US Securities and Exchange Commission (SEC) against the crypto exchange and its founder Changpeng Zhao, in particular, is expected to complicate procedures throughout the globe. At the same time, the SEC accused Binance of repeatedly breaking securities rules, ignoring local laws, and dodging regulatory inspection.

Binance Denied Depository License In Germany: Report

Binance withdrew its application for regulatory certification in Austria on June 26. The exchange announced its pullout from the Netherlands earlier this month after failing to get regulatory permission. It has also moved to deregister its local company in Cyprus and is being investigated in France for significant money laundering. Belgium’s regulator ordered Binance to halt operations in the nation last week.

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