Binance again lost the right to work in one country
Date: 2023-06-30 Author: Karina Ziganova Categories: BLOCKCHAIN
Cryptocurrency exchange Binance was denied an application for a license to operate in Germany, according to Finance Forward.
According to the publication, the financial regulator BaFin denied the exchange a license to store cryptocurrency. However, the agency refused to provide details due to confidentiality. Without a license, the company will not be able to advertise its services.
Binance representatives also said they would not share details of the conversations with regulators. However, the company assured that it will continue to work on compliance with BaFin requirements, calling it a "detailed and continuous process." Moreover, the exchange is confident in the presence of "the right team and measures to continue negotiations with regulators in Germany."
Binance under pressure in Europe
Germany was another setback for Binance. Over the past month, the exchange has faced problems in a number of European countries.
First, the exchange revoked the license in Cyprus without explanation. Binance later announced that it was leaving the Netherlands. The company was unable to obtain a virtual asset service provider (VASP) license from the local regulator, and was forced to curtail its activities in the countrу
The British regulator also revoked the license of a subsidiary of Binance. At the same time, the Belgian regulator ordered the exchange to stop working in the country. In addition, in Austria, Binance withdrew its application for a license under pressure from the regulator
Binance was in the crosshairs of regulators in two more European countries: Ireland and Malta. Now the authorities of the European Union (EU) have suspected subsidiaries of the Binance crypto exchange of illegal activities. Sources claim that the company can forge accounts and transactions in multiple EU jurisdictions and mix customers' money from different countries to confuse regulators and tax authorities.
U.S. Problems
Binance's troubles in Europe began after the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange and its head Changpeng Zhao on June 5, filing 13 charges.
However, representatives of the exchange deny these accusations. They argue that Binance has always sought to cooperate with regulators, and therefore are disappointed with this position of the SEC.
