German Regulator Denies Crypto Custody License to Binance
The German financial regulator, BaFin, has reportedly denied a crypto custody license to Binance. The decision was reported by Finance Forward, citing sources familiar with the matter. It remains unclear whether the denial was a formal decision or part of ongoing discussions between Binance and BaFin.
In response to the report, a spokesperson from Binance stated that they are unable to provide specific details about their conversations with regulators. However, they reiterated their commitment to complying with BaFin’s requirements and expressed confidence in their team and measures. Binance is determined to continue discussions with regulators in Germany.
BaFin, adhering to professional secrecy requirements in Germany, declined to comment on individual companies.
This recent development adds to the regulatory challenges faced by Binance in different jurisdictions. Reports emerged on June 26 stating that Binance had chosen to withdraw its application for regulatory approval in Austria. Furthermore, the cryptocurrency exchange made the decision to relinquish its registration with Cyprus’ securities regulator and cease operations in the Netherlands following an unsuccessful attempt to register. Furthermore, Binance was ordered to halt operations in Belgium, and it is currently facing allegations from the U.S. securities regulator regarding the operation of an unregistered trading platform.
