Binance Withdraws Crypto Custody Application in Germany

Binance has withdrawn its application for a cryptocurrency custody authorization in Germany.

The exchange verified its withdrawal on July 26, approximately one month after reports of rejections from The German Federal Financial Supervisory Authority (BaFin).

BaFin reportedly rejected the crypto exchange’s custody authorization on June 29.

At the time, it was unclear whether the regulator denied Binance’s application formally or whether the company was informed verbally.

Binance has now verified that its license application has been officially withdrawn.

A Binance representative stated that the company intends to reapply for a license in Germany, with modifications to its application to reflect changes in the regulatory environment:

“Binance confirms that it has proactively withdrawn its BaFin application. The situation, both in the global market and regulation, has changed significantly. Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.“

Binance’s CEO, Changpeng Zhao, stated that the company would concentrate on becoming compliant with the Markets in Crypto-Assets (MiCA) regulations of the European Union to offer its services to European nations.

Despite this, its European expansion plans have been hampered by regulatory issues in the United States.

Financial regulators in the United States are conducting multiple investigations into the cryptocurrency exchange.

Since early 2022, the cryptocurrency exchange has also been investigated in France.

Before withdrawing from Germany, the cryptocurrency exchange left the Dutch market after failing to obtain a virtual asset service provider license from the country’s regulators.

The cryptocurrency exchange also submitted applications to cease operations in the United Kingdom and Cyprus.