This week, Binance, the world’s largest crypto asset trading exchange, withdrew its license application to the FMA. Moreover, the German BaFin is allegedly reluctant to authorize Binance as a crypto custodian. Recently, the company withdrew from the Netherlands, the UK, and Cyprus due to regulatory issues. In the U.S. Binance is faced with lawsuits from SEC and the CFTC.
In Europe, Binance is also having run-ins with regulators. For example, the company is under investigation for illegally operating in France. In Belgium, the FSMA banned Binance from offering cryptocurrencies a few days ago. In addition, the assets must be returned to customers.
The Binance platform, considered the world’s largest crypto exchange, reportedly withdrew its license application to the Austrian Financial Market Authority (FMA) some time ago. Finance Forward reported this. The authority did not comment on the medium.
According to the report, Binance itself also did not directly address the Austria withdrawal, saying it does not disclose details from talks with authorities. However, the company, facing offensives from supervisors in several countries, stressed that it is complying with the law.
According to the statement, Binance in Europe will now focus on launching the MiCA regulation and implementing these E.U. rules, which will come into force at the end of 2024.
The trading venue had only started to set up a site in Austria in the middle of last year. In the meantime, however, the then managing directors of Binance Austria GmbH, Michael Wild and Raphael Zakarias, are no longer on board, as seen in the official company register. Since March 2023, the new German boss Jonas Sebastian Jünger has also been acting as managing director at Österreich GmbH. Binance lost quite a few executives in Europe in recent months.
The company is under regulatory pressure in both Europe and the U.S. In the U.S., authorities, including the market regulator SEC, are making several allegations against Binance and founder Changpeng Zhao, including failure to separate customer and company funds or money laundering. Binance denies the allegations. Recently, there was an agreement that U.S. client funds must be repatriated. The turmoil has recently weighed heavily on the crypto market.
However, the provider is holding on to its German branch. Jünger, the head of Germany, emphasizes to Finance Forward that establishing this branch is his “top priority”.
