In June 2023, BaFin, which is Germany’s financial regulator, revealed that it would reject Binance’s licence application. At the time, Binance said it would not share details of its conversations with regulators but emphasised that it would continue to work to comply with BaFin's requirements.
Now, the cryptocurrency exchange has decided to abandon its efforts to enter the German market by ‘proactively withdrawing its BaFin application.’ The move comes in the context of increased regulatory scrutiny in the crypto sector, as well as the recent lawsuit that Binance is involved in with the US Securities and Exchange Commission.
Binance officials cited by Reuters highlighted recent regulatory changes in the global market and revealed the company’s continued intent to apply for a licence in Germany as long as the submission accurately reflects these changes.
Germany is not the only country that has proven inhospitable for Binance. The cryptocurrency exchange has received an on-site visit from French authorities in June 2023, as the company came under preliminary investigation for illegal canvassing of clients and money laundering according to Reuters.
Binance issued a statement and confirmed an on-site visit from relevant authorities in France. Representatives from Binance also revealed that they will fully cooperate with law enforcement agencies and regulators on all ongoing compliance requirements with the aim of upholding a high standard.
Apart from entering the crosshairs of French authorities, Binance also left the Netherlands after it failed to obtain a licence from the Dutch Central Bank.
Even though it is engaged in a legal battle in the US and is withdrawing from certain European markets, Binance has successfully launched its services in other parts of the world such as Kazakhstan. In 2022, Binance obtained a permanent license from Kazakhstan’s AIFC Financial Services Authority (AFSA). With the licence, Binance gained approval to operate a digital asset platform and provide custodial services within the jurisdiction of the Astana International Financial Center (AIFC).
In July 2023, the company announced its plans to launch a full suite of services on its new platform in Japan. Binance acquired Sakura Exchange BitCoin in November 2022 and revealed its plans to create a platform that would be fully compliant with local rules. Binance has also made other efforts to expand into Asia recently, including in South Korea and Thailand.
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