Binance License Application in Germany Rejected by BaFin: Report
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Binance exchange, the biggest crypto brokerage firm in the world by trading volume, has faced another roadblock in its bid to deepen its foothold in the European market. According to a report from FinanceFWD, German regulator BaFin has rejected the application for an operating license from the trading platform, an apparent setback in its plans.
Binance's many woes
Per the report, CEO of Binance Germany Jonas Jiinger has been unable to get the exchange licensed due to the fact that regulatory requirements are now too stringent to meet. While Europe remains a crucial region for Binance's global business, it has continued to face significant roadblocks with regulators there.
Over the past few weeks, the trading platform has revoked its application for licensing in Austria and the United Kingdom, and it has also closed its operations in the Netherlands as well. It remains unclear whether the initial refusal is final from BaFin, but Jiinger noted that the team would continue its collaboration with authorities.
"While we cannot share details of our discussions with regulators, we are continuing to work to meet Bafin requirements." It is an "ongoing process." a Binance statement reads, adding that it remains "confident that we have the right team and the appropriate measures in place to continue our discussions with the regulators in Germany."
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Godfrey BenjaminLight at end of tunnel?
Binance exchange remains one of the exchanges with the widest regulatory crackdowns in the industry. Besides apparent roadblocks in Europe, the trading platform is also under investigation by both the U.S. SEC and the CFTC for alleged violation of market rules.
The trading platform has been contending with regulatory uncertainties for a while now, and it has been able to surmount some of its challenges as they come up. The firm has signed an MOU with the government of Kazakhstan, a move that has birthed a new exchange in the country.
Binance is unrelenting in seeking approval in all jurisdictions it operates in, and by its consistency, it showcases that there is light at the end of the tunnel.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin