Binance Retreats in Germany as Crypto Landscape Shifts ‘Significantly’
Cryptocurrency giant Binance has suspended its plans to seek a license in Germany.
A company spokesperson told PYMNTS Wednesday (July 26) that Binance has “proactively withdrawn” its license application with Germany’s Federal Financial Supervisory Authority, more commonly known as BaFin.
“The situation, both in the global market and regulation, has changed significantly,” the spokesperson said. “Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.”
The company’s announcement follows reports from last month that BaFin was going to deny Binance’s application, per CoinDesk.
As for Binance’s “situation,” last week brought the news that its share of spot trading had fallen by 17 percentage points, from 90% to 73%, since the start of the year as it faces tougher regulatory scrutiny in the United States.
The Securities and Exchange Commission (SEC) filed 13 charges against Binance and its founder Changpeng Zhao last month, accusing the company of — among other things — operating as an unregistered exchange, failing to keep American investors from accessing its website and misleading investors.
Binance responded on its blog by saying it was “disappointed” with the SEC’s action, arguing that it had cooperated with the regulator’s investigations and aimed to address its concerns and come to a negotiated settlement.
Binance reportedly laid off 1,000 employees in recent weeks, although Zhao has disputed that number on Twitter.
Some of the company’s top executives have also resigned as the U.S. Department of Justice looks into charges of its own
The company’s decision to withdraw from Germany, even if it is just for the time being, follows a series of other setbacks in Europe.
Last month brought reports that the company was facing a criminal investigation for money laundering in France, along with an order to shut down its services in Belgium, and its voluntary exit from the Netherlands.
Additionally, Binance’s European banking partner Paysafe announced it would cease providing euro deposits and withdrawals via bank transfer starting in September.
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