Binance Retracts Crypto Custody License Application from Germany's BaFin

Binance, the renowned cryptocurrency exchange, has withdrawn its application for a crypto custody license in Germany.

On July 26th, the company confirmed this decision, followed by weeks of speculation and reports about the German Federal Financial Supervisory Authority's (BaFin) rejection of the application.

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As reported earlier, the news about BaFin rejecting Binance's custody license application started spreading at the end of June.

However, it remained ambiguous whether this was an official denial or a verbal indication given to the company. In light of recent developments, Binance has confirmed that it has indeed pulled back its application.

Binance revealed its intentions to reapply for a license in Germany. The company plans to adjust its application to reflect the dynamic nature of global market trends and evolving regulations. A spokesperson from the crypto exchange stated:

Binance confirms that it has proactively withdrawn its BaFin application. The situation, both in the global market and regulation, has changed significantly. Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.

Earlier this year, Changpeng Zhao, Binance's CEO, shared the company's aspiration to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulations as a strategic move to expand its services across Europe.

However, its plans for European expansion have experienced delays following the lawsuit by the US Securities and Exchange Commission and Commodity Futures Trading Commission.

In the past few months, Binance has also left the Dutch crypto market after it failed to receive an appropriate license. On top of that, the firm is also preparing to fully close its operations in the United Kingdom and Cyprus.

These events underscore Binance's strategic moves to align with regulatory norms as it navigates the evolving global cryptocurrency landscape.