Binance, the world’s largest crypto exchange by volume, is facing quite a predicament after exiting multiple European markets. After exiting Cyprus and the Netherlands, the exchange has now withdrawn its BaFin application in Germany. BaFin, Germany’s financial regulator, denied the exchange a permit last month due to regulatory challenges.
According to Jonas Jünger, managing director of Binance’s German arm, the aim of the firm was to set up a successful branch in the country. Jünger reaffirmed that there are very strict regulatory requirements to achieve this goal. The exchange aims to reapply for a permit once the changes in the regulatory environment have been addressed.
The popular exchange ceased providing services to Dutch users on July 17. The platform no longer permits trades, purchases, withdrawals, and deposits in the region, despite attempts to find alternate ways to cater to Dutch users.
Also Read: Binance Sets Deadline for Dutch Users to Clear Out Crypto Holdings
Does Binance still have a way to operate in Europe?
The European Union recently made a historic move to introduce a law to regulate the crypto space. MiCA (Markets in Crypto Assets) will come into effect on June 30, 2024. According to a spokesperson, Binance is now working towards applying for a permit via the MiCA registration. If accepted, the law will allow the exchange to operate in every country in the EU bloc of nations, including Germany, the Netherlands, and Cyprus.
Binance’s recent exits in the European markets come amid regulatory scrutiny against the firm and its CEO Changpeng Zhao. The exchange was recently sued by the SEC (Securities and Exchange Commission) and also faces lawsuits from the CFTC (Commodities Futures Trading Commission).
Also Read: Binance and CEO Sued by US CFTC For Alleged Regulatory Violations
Nonetheless, the exchange still has a presence in Europe, with its European headquarters located in Paris, France. Moreover, the exchange also offers its services in Italy, Spain, Poland, Sweden, and Lithuania.