German Regulators Deny Cryptocurrency License to Binance


German regulators have informed Binance, the world’s largest cryptocurrency exchange, that they will not grant the company a cryptocurrency custody license, according to a person familiar with the matter. This decision marks the latest in a series of setbacks for Binance, which has been facing mounting pressure from regulators across the globe.

Recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO Changpeng Zhao, accusing them of engaging in a “web of deception” to evade U.S. laws. Binance, however, denies these charges. The regulatory scrutiny on Binance has extended to Germany as well, where BaFin, the German regulator, declined to comment on specific companies due to confidentiality.

2023 06 05T104546Z 1263379226 RC2ZSU907XES RTRMADP 3 BINANCE CEO hsnzha

While Binance refrained from sharing specific details about its discussions with regulators, the company stated that it is committed to meeting BaFin’s requirements. Binance described the process as “detailed and ongoing,” expressing confidence in having the right team and measures in place to continue engaging with regulators in Germany.

The news of the German license denial was initially reported by Finance Forward, highlighting the growing challenges faced by Binance in recent weeks. Last week, Belgium’s FSMA regulator ordered Binance to cease providing any virtual currency services within the country. Additionally, France is currently investigating Binance, leading the exchange to exit the Dutch market due to its inability to fulfill the registration requirements necessary to operate as a virtual asset service provider.


German Financial Regulator

Notably, BaFin had previously warned Binance in 2021 about potential fines for offering certain digital tokens to clients in Germany without providing the necessary information. These developments contribute to the increasing regulatory hurdles faced by Binance in maintaining its operations and reputation within the cryptocurrency industry.