(CTN News) – German financial regulator BaFin has reportedly rejected Binance‘s application for a crypto custody license, as per sources familiar with the matter, casting uncertainty over the status of the license bid.
Binance, a prominent cryptocurrency exchange, has been facing regulatory challenges globally, similar to its experiences in 2021, with warnings from multiple countries.
Binance has expressed its commitment to complying with BaFin’s requirements and continues to work towards that goal.
Binance’s Regulatory Struggles Continue Amid Focus on European Market
However, the reported denial of the custody license poses obstacles to Binance’s advertising plans in Germany, as only licensed firms are permitted to advertise in the country. Nevertheless, the exchange still boasts a significant user base of approximately 2 million customers.
The regulatory hurdles for Binance extend beyond Germany, with ongoing investigations in France since early 2022 on charges of “aggravated money laundering.”
Binance also withdrew from the Dutch market due to its failure to obtain a virtual asset service provider license and has applied to wind down its operations in the United Kingdom and Cyprus.
The exchange has emphasized its focus on the European market and endeavors to comply with the Market’s Crypto Assets (MiCA) regulations, but it has encountered regulatory resistance in several European countries.
Binance’s regulatory struggles underscore the challenges faced by cryptocurrency exchanges in navigating the evolving global regulatory landscape.