Crypto Exchange Binance Withdraws Application For Crypto License In Germany
Crypto exchange Binance has to make some tough decisions sometimes. And withdrawing its application for a crypto license in Germany seems like that. The German Federal Financial Supervisory Authority (BaFin) rejected Binance's crypto exchange license almost one month ago. It was not so clear then.
It was not confirmed whether regulators officially rejected the application or verbally let the company know about it. Now Binance makes it clear that it has withdrawn its cryptocurrency license application officially. According to a Binance spokesperson, the crypto exchange still wants to apply for a crypto license in Germany.
The thing is, the situation in the international market has already changed significantly. Regulators come up with new regulations or implement the existing regulations in crypto. The crypto exchange application is supposed to reflect those changes. Regulators may not give a positive signal if they don't get an application reflecting those changes.
There are new crypto regulations or significant changes in upcoming regulations. Binance wants to be more regulatory compliant and that's its focus. The exchange will offer its exchange services complying with European Union’s Markets in Crypto-Assets (MiCA) regulations as well as expand its services in European countries.
The crypto exchange has to consider everything seriously when it comes to expanding its operation in a tough situation like this. The U.S. SEC puts so much pressure on Binance filing lawsuits against Binance and Binance CEO Changpeng Zhao. Moreover, this exchange has been under investigation in France which started in early 2022.
The crypto exchange has to be ready to face the upcoming unfavorable situation. Binance has already made some tough decisions like quitting Canada even though that's a huge market. Binance also exited the Netherlands due to failing to meet registration requirements to operate its business.
Things do not look good while handling these challenging situations. The most popular crypto exchange Binance has the experience and necessary skills to deal with difficult situations. The truth is, the crypto market gets bigger. More people are adopting crypto and they see how it changes their life. The present situation will surely change sooner or later.
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In my country there has been situation of divers frozen of customer's account by Binance. This is not encouraging for us.
Thanks for sharing this vital information
The central authority will keep using its power to do things in its favor. Regulators intend to have more control so that crypto does not become a threat.
There isn't much they can do when the regulations are keeping them out of the system. I think there will be alternatives to take Binance's place but it's never easy to switch platforms.
Agree with you. Regulators can make it difficult for any crypto exchange to be compliant and operate their business.