The largest cryptocurrency exchange by volume, Binance, has withdrawn its application for a license from German financial regulator BaFin. This comes after German officials informed it they would not grant it a cryptocurrency custody license. Binance made this decision in response to demands from regulators all across the world.
The decision was made in response to a withdrawal from markets like Austria, Belgium, and the Netherlands, as well as because its American arm is being sued by regulators for running an unlicensed exchange.
A spokesperson from Binance confirmed the news saying, “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.”
After experiencing increased regulatory difficulties in Europe, Binance has continued to withdraw its licensing applications in several European nations.
Key executives from Binance who were in charge of growing the company’s operations in Europe have either departed the company or are set to do so. Earlier this year, Michael Wild, who was in charge of expanding the company’s operations in Germany, Switzerland, and Austria alongside his team, left the largest cryptocurrency exchange.
In addition, Binance opted to leave the Netherlands after an unsuccessful effort at registration there, gave up its registration with Cyprus’ securities commission, and received a directive to stop activities in Belgium. Despite a money laundering investigation, Chief Executive Officer Changpeng “CZ” Zhao stated earlier in June that France remained Binance’s flagship location in Europe.
Also Read: Binance Market Share Drops to One-Year Low Amid Increased Regulatory Scrutiny
As they fight an onslaught of regulatory crackdowns, Binance, the biggest cryptocurrency exchange in the world, and its US affiliate have seen their market share decline this year.
According to analytics firm Kaiko, Binance decreased its global market share from 60% at the beginning of the year to 52% as a result of the SEC action for allegedly violating the regulator’s guidelines.
Also Read: Breaking: Singapore Court Rules Crypto As Property In ByBit Judgement
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