Binance's European Woes Continue as German Regulator Denies License

Investing

Published: June 29, 2023 6:55 am

Last Updated: June 29, 2023 12:09 pm

Germany’s financial watchdog BaFin denied Binance’s application for a crypto custody license this Thursday, Finance Forward reported. At the same time, Binance’s banking partner in Europe decided to end their partnership with the company in the European market effective September onwards.

Binance Continues to Face Regulatory Challenges in Europe

According to a local news outlet Finance Forward, Binance saw its application for obtaining a custody license denied by German regulators. Per the report, whether the move represented a formal decision from the country’s financial watchdog remains unclear. However, Binance said it would continue trying to meet the regulatory requirements.

“While we are unable to share details of conversations with regulators, we continue to work to comply with BaFin‘s requirements. As expected, this is a detailed and ongoing process. We are confident that we have the right team and measures in place to continue our discussions with regulators in Germany.”

– Binance spokesperson said.

The decision represents another headwind for Binance’s growth and operational prospects in Europe. Earlier this week, the world’s largest crypto exchange withdrew its application for an operating license in Austria, just days after it halted its registration process in Cyprus and departed the Dutch market following an unsuccessful attempt to obtain a permit.

Earlier this month, reports in France said Binance is being investigated for potential money laundering in the country. At the same time, the exchange faces a lawsuit from the US Securities and Exchange Commission (SEC) for allegedly managing an unregistered digital asset trading marketplace.

Binance’s Euro Banking Partner Ceases Support

To makes matters even worse, Binance is also set to lose access to euro-denominated bank transfers to and from its crypto platform after its European banking partner Paysafe decided to end support. More specifically, Paysafe will no longer offer transfers of euros to and from Binance from September 25, the online payments company said in a statement.

“Following a strategic review, we have taken the decision to cease offering our embedded wallet solution to Binance across the region.”

– Paysafe said in a statement.

The crypto exchange said it intends to change the provider, adding that deposits and withdrawals of other fiat currencies and trading of cryptocurrencies on its platform remain intact. While the company’s woes in Europe continue to mount, the European Union (EU) is edging closer to implementing its comprehensive crypto regulatory framework, the MiCA.

This article originally appeared on The Tokenist

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