The largest cryptocurrency exchange in the world, Binance, has chosen to withdraw its request for a crypto license from the German financial watchdog BaFin, citing the region’s growing regulatory burdens.
German officials allegedly said they would not provide the exchange with a license for Bitcoin safekeeping, prompting Binance’s decision. This action shows the increasing pressure regulators around the world are putting on Bitcoin enterprises. A new Reuters report claims that
In response to the situation, a spokesperson from the exchange confirmed the withdrawal, stating:
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.
Effects On Binance Market Share
Binance has had issues in various European markets over the past few months, which has caused the withdrawal of licensing applications in a number of nations, including the Netherlands, Austria, and Belgium.
Furthermore, because of regulatory difficulties, key employees who were in charge of Binance’s European activities have departed the business. Michael Wild left the exchange earlier this year after playing a vital role in growing its presence in Germany, Switzerland, and Austria.
In addition to Germany, registration concerns caused Binance to leave the Netherlands, and the exchange received instructions to stop operating in Belgium. the exchange also made the decision to revoke its registration with the Cyprus Securities Commission. The exchange’s CEO, Changpeng “CZ” Zhao, said that France remained the company’s major European base despite being under investigation for money laundering.
The regulatory obstacles have caused the exchange’s market share to plummet internationally, from 60% at the start of the year to 52%, including that of its US subsidiary. The US Securities and Exchange Commission (SEC), which accuses the exchange of regulatory violations, is largely responsible for this decline.
An important event in the constantly evolving landscape of European cryptocurrency law is the withdrawal of Binance’s application for a licence to operate in the German cryptocurrency market. The company’s future endeavours will likely be influenced by its continued efforts to comply with regulatory norms as regulators across the world scrutinise the cryptocurrency business more and more.