Binance Drops License Application in Germany amidst Regulatory Challenges

<p>The embattled cryptocurrency exchange Binance has reportedly withdrawn its application for a crypto license in Germany, signifying the tough regulations and legal challenges the exchange is facing in expanding its operations in Europe.</p><p><a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">Finance
Magnates</a> reported in
June, citing insiders at BaFin who spoke with Fast Forward, that the German
regulator was unwilling to grant Binance a license for crypto custody services. The crypto
giant had hoped to make Germany a new hub in Europe by obtaining the license.</p><p>Binance Cites Market
Sentiment</p><p>According to the sources
who shared information with Coindesk, the crypto exchange confirmed that it had
withdrawn the application due to the situation in the global market and the
changes in crypto regulations. However, the exchange said it was planning to reapply
for the license after considering the prevailing market conditions.</p><p>Elsewhere, Binance <a href="https://www.financemagnates.com/cryptocurrency/binance-to-transfer-dutch-clients-to-local-rival-coinmerce/" target="_blank" rel="follow">transferred
its users</a> in the
Netherlands to a rival crypto <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>, Coinmerce, and ceased operations in the
country on July 17. The exchange made the decision after failing to obtain a
virtual asset service provider (VASP) license from the Dutch regulator. The
transfer of users made Coinmerce, a regulated cryptocurrency exchange in the
Netherlands, one of the largest crypto operators in the region.</p><p>Similarly, Binance filed
an application with the Cypriot regulator in June <a href="https://www.financemagnates.com/cryptocurrency/binance-seeks-to-deregister-subsidiary-in-cyprus/" target="_blank" rel="follow">to
deregister its subsidiary</a> in
the country. Although the regulator, the Cyprus Securities and Exchange
Commission (CySEC), did not specify why Binance was exiting the country, a spokesperson
from the exchange said the company was planning to focus on "fewer
regulated entities in the EU."</p><p>France, Cyprus, and the
US</p><p>In France, Binance is
facing investigations for allegations of illegally offering digital asset
services and implementing inadequate controls to prevent <a href="https://www.financemagnates.com/terms/m/money-laundering/">money laundering</a>.
According to the French authorities, Binance allegedly facilitated investment
transactions that concealed suspected money laundering activities.</p><p>Additionally, Binance
and Zhao are <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">facing
13 charges</a> by the
Securities and Exchange Commission (SEC) for allegedly violating the laws
governing the US securities regulations. Besides that, Binance and its
Co-Founder Changpeng Zhao are facing charges filed by the Commodities Futures
Trading Commission (CFTC) in March.</p><p>Two
days ago, the exchange and Zhao <a href="https://www.financemagnates.com/cryptocurrency/binance-takes-on-cftc-with-plans-to-seek-dismissal-of-lawsuit/" target="_blank" rel="follow">disclosed
plans</a> to seek a
dismissal of the charges brought by the CFTC in response to the complaint expected to be submitted on July 27. The regulator is accusing the exchange and Zhao of violating the
federal regulations related to the issuance of commodities.</p><p>Tiger launched HK stocks' auto-invest; Moneta has hired a new manager; <a href="https://www.financemagnates.com/forex/news-nuggets-26-july-tiger-launches-hk-stocks-auto-invest-moneta-hires-new-manager/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Jared Kirui at www.financemagnates.com.