Binance Withdraws German Crypto License Application: Here’s Why The Move Is Positive


Binance Withdraws German Crypto License

The post Binance Withdraws German Crypto License Application: Here’s Why The Move Is Positive appeared first on Coinpedia Fintech News

In yet another withdrawal, Binance has officially announced that it is withdrawing its application for a license from the German financial regulator BaFin. The exchange is already under pressure from the EU countries as the company is also pulling back from other markets, including Austria, Belgium, and the Netherlands. Additionally, Binance’s U.S. arm is facing legal action from regulators for operating an unregistered exchange.

Many experts are claiming it to be the calculative move by Binance as they are testing the regulatory waters before jumping in the pool.

European Union Law Giving Positive Hints? A Smart Move by Binance!

Whereas a spokesperson from Binance clarified that they have proactively withdrawn the BaFin application due to significant changes in the global market and regulatory landscape. However, they still plan to reapply for the appropriate licensing in Germany, ensuring that their submission accurately reflects the current changes in the industry.

On the other hand, previously, there were reports that BaFin was likely to reject Binance’s license application, but the company’s spokesperson had initially denied this and mentioned ongoing discussions with officials.

Besides Germany, Binance has also given up its registration with Cyprus’ securities regulator and decided to exit the Netherlands after a failed registration attempt. Furthermore, it has been ordered to halt operations in Belgium.

Despite facing challenges in various European markets, Binance’s CEO Changpeng “CZ” Zhao stated that France remains their flagship center in Europe. Additionally, the upcoming European Union laws, set to take effect in 2024, will enable crypto service providers to operate across the bloc with a single license.

Well, Binance has calculated the market strength in Europe and to establish there they must ensure clear terms with the regulators. Hence despite the rejections and withdrawals company is hopeful to expand its horizon.