German regulator reportedly rejects Binance’s crypto custody license request

BaFin Denies Binance’s Application for Crypto Custody License

BaFin, the financial regulator of Germany, has reportedly denied Binance’s application for a crypto custody license.

Forward Finance initially reported the news, according to people familiar with the situation. Cointelegraph contacted Binance to confirm the report, and a representative from the company stated that they “cannot disclose information regarding their discussions with regulators,” and further commented.

Based on the comments from Binance and the exclusive report, it is uncertain whether BaFin has officially declined Binance’s attempt to obtain the license or informed the company verbally of the same, and the exchange might retract the license in the foreseeable future.

The refusal of a custody license has impeded Binance’s promotional efforts in Germany, as only licensed companies are allowed to advertise in the nation. Despite this, Binance is still a major trading platform, boasting an estimated two million users.

Binance is still facing numerous regulatory issues, reminiscent of the situation in 2021 when it received warnings from over half a dozen countries.

Blockchain Australia CEO Criticizes ‘Regulation by Enforcement’ Approach

Blockchain Australia CEO strongly criticizes ‘regulation by enforcement’ approach, urging not to imitate the US.

Following the recent regulatory issues it encountered in the United States, the CEO of Binance declared that their main focus is on the European market and to be compliant with the Market’s Crypto Assets (MiCA) regulations. Nevertheless, similar to the U.S., the crypto exchange has been met with regulatory resistance in a number of European countries too.

A report released recently showed that the exchange has been under investigation for “aggravated money laundering” charges in France since the beginning of 2022. The exchange was forced to leave the Dutch market after not being able to get a virtual asset service provider license from the country’s regulators. Additionally, it has also filed to cease its services in the United Kingdom and Cyprus.

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