Germany’s financial watchdog, the Federal Financial Supervisory Authority (BaFin), has decided not to grant crypto exchange Binance a custody license, according to a report from Finance Forward. While we are unable to share details of conversations with regulators, we continue to work to comply with BaFin’s requirements, said a Binance spokesperson in an emailed statement to journalists.
The report added that it’s unclear if the denial was a formal decision from BaFin or an intention expressed in ongoing discussions. Binance has also withdrawn its application for regulatory approval in Austria, given up its registration with Cyprus’ securities regulator, and decided to quit the Netherlands after a failed attempt to register. It was also ordered to halt operations in Belgium, just as it faces allegations from the U.S. securities regulator for allegedly operating an unregistered trading platform.
In preparation for the EU’s new crypto regulation, Binance has said it is streamlining its European strategy. Binance remains committed to working collaboratively with regulators around the world and we are additionally focused on getting our business ready to be fully compliant with the new EU rules on crypto-assets (MiCA), the Binance spokesperson said.