Binance Crypto Services in Cyprus Under Regulatory Review for Potential Deregistration

Vignesh Karunanidhi
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Source: Financial Times

Binance obtained regulatory approval in Cyprus in October, 2022. The company was granted Class 3 registration as a Crypto Asset Services Provider (CASP) by the Cyprus Securities and Exchange Commission (CySEC). Cyprus is one of the numerous territories where the exchange established its presence in 2022.

However, according to the latest updates, the exchange has filed an application to deregister in Cyprus.


Reason for Binance exiting Cyprus unknown

According to the details on the website of the Cyprus country regulator, Binance Cyprus Limited is under examination for deregistration. Binance was offering crypto asset services in the island nation, including, exchange between crypto and fiat, management, holding, custody, and numerous other services.

However, the recent move by the exchange to deregister has definitely raised questions. Perhaps, the exact reason for this decision is unclear at the moment.

This news comes at a time when the exchange is going through a regulatory battle with the SEC. The SEC had recently filed a lawsuit against CZ and his exchange for allegations on various grounds. The commission also filed for a temporary restraining order against Binance.US. However, the request from the regulator was dismissed by Judge Jackson. The SEC also went against Coinbase by filing a lawsuit against the exchange.