Binance Fails to Obtain Licence in Germany
• Binance, the world’s largest crypto exchange, has failed to secure a license in Germany.
• The firm has blamed its failure on changing rules.
• Binance is facing increased scrutiny from global regulators due to legal woes in the US and other European countries.
Changes in Global Market & Regulations
Binance has confirmed that it has withdrawn its application for a crypto license in Germany due to changes in the global market and regulations. A spokesperson of the firm stated that they intend to re-apply when they are better equipped. In June alone, Binance pulled out from the Netherlands, Cyprus, and the UK. It is also reportedly under investigation in France for money laundering.
Despite failing to obtain a licence in Germany, Binance is still licensed in some European countries including Italy and Spain. The firm is also preparing to stage a comeback in Japan soon.
Consequences of Failure
The failure of Binance to secure a license in Germany raises questions about its operations across Europe as it prepares for applications for the EU’s Markets in Crypto-Assets (MiCA)license.
Binance’s failure to secure a license in Germany serves as an example of how quickly regulations can change globally and how this can negatively affect firms operating within this space. Despite this setback, however, Binance remains licensed elsewhere and continues preparations towards launching their services again in Japan soon.