The embattled cryptocurrency exchange Binance has reportedly withdrawn its application for a crypto license in Germany, signifying the tough regulations and legal challenges the exchange is facing in expanding its operations in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.
Finance
Magnates 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.
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withdrawn the application due to the situation in the global market and the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.
Elsewhere, Binance transferred
its users in the
Netherlands to a rival crypto exchange , 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.
