The crypto exchange giant's struggles in Europe seem to be never-ending.
The German Federal Financial Supervisory Authority (BaFin), the nation's financial watchdog, has reportedly turned down the crypto custody license application submitted by a global cryptocurrency exchange, Binance.
The alleged rejection was initially reported by Forward Finance and was later confirmed by an unnamed source.
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When contacted for comment, a representative from Binance declined to disclose specific details about the regulator's decision, stating:
We continue to work to comply with BaFin‘s requirements. As expected, this is a detailed and ongoing process. We are confident that we have the right team and measures in place to continue our discussions with regulators in Germany.
It remains unclear if BaFin has formally refused Binance's application or if the crypto exchange has been informally notified of the pending denial. This uncertainty leaves room for speculation about whether Binance might withdraw its application in the near future.
The news marks another episode in Binance's ongoing regulatory challenges. Much like in 2021, when it received regulatory warnings from several countries, the crypto exchange is once again under serious regulatory scrutiny.
Following recent issues in the US, Binance's CEO expressed a shift in focus toward compliance with European Market’s Crypto Assets (MiCA) regulations. However, the crypto exchange has encountered regulatory resistance in many European nations.
Binance has been under investigation in France since early 2022 on "aggravated money laundering" charges. It also recently withdrew from the Dutch market after failing to secure a virtual asset service provider license and has applied to cease its services in both the United Kingdom and Cyprus.
As Binance's quest for a crypto custody license in Germany faces potential denial, the global crypto exchange continues to navigate a complex landscape of regulatory challenges across multiple jurisdictions. Despite the setbacks, Binance remains steadfast in its efforts to comply with local regulations and secure a foothold in these markets.
