Germany Joins Anti-Binance Sentiment, BaFin Rejects License Application

Germany Joins Anti-Binance Sentiment, BaFin Rejects License Application

After the
United States declared open war on cryptocurrency exchange Binance, Europe is also
proving to be an increasingly unfriendly territory for the digital asset market giant.
Owned by Changpeng Zhao (CZ), the platform had hoped that Germany would become
one of its new hubs on the Old Continent. However, recent reports suggest that
the local financial market regulator, BaFin has not looked favorably on
Binance’s application.

BaFin Rejects Binance’s
Bid in Germany

According to information published by a German financial news website, Finance Forward
today (Thursday), insiders claim that BaFin is unwilling to grant Binance a
crypto custody license. Binance’s press spokesperson has not confirmed these
reports but commented to CoinDesk that the exchange is continuously
working to meet all the requirements set by BaFin. He acknowledged that it is a
complicated and lengthy process, but the platform is still hopeful for a
positive conclusion.

If Binance
fails to obtain a license in Germany, its business development in Europe may be
in question. This is especially true given that the exchange has
significantly limited its local presence due to regulatory changes.

Finance
Magnates reported
two weeks ago that Binance is exiting Cyprus and the Netherlands. Since then,
the platform has come under scrutiny from the French prosecutor’s office
for operating an 'illegal’ exchange; it withdrew its license in the United
Kingdom; and it was forced to leave Belgium.

The
challenges in Europe are further exacerbated by the fact that Paysafe Solution,
Binance’s euro banking partner, is suspending support for further payments from
the end of September 2023.

Binance Shifts Focus to
Asia and the Middle East

Although
Binance does not claim to be withdrawing from Europe, but rather adjusting its
local strategy to comply with new regional cryptocurrency regulations (MiCA), it is faring considerably better on other fronts.

A week ago,
Binance entered the Central Asian market by launching local services in
Kazakhstan. The new platform will allow users to trade and store
digital assets, make fiat deposits and withdrawals, as well as avail conversion
services.

A representative
from the exchange also hinted earlier this week that faced with regulatory
pressure in the US and the EU, the Middle East might become Binance’s primary
target. These words came from Alex Chehade, the General Manager of Binance
Dubai. According to Chehade, the United Arab Emirates (UAE) have favorable and
transparent regulations regarding digital assets.

At a time
when the EU is implementing MiCA and the United States is clashing with crypto
exchanges, the giants of 'traditional finance’ are seeking their place at the growing
cryptocurrency table. Over the past two weeks, more companies have joined the
collection of applications for the establishment of a spot Bitcoin ETF, which was initiated by BlackRock. ARK Invest, BitWise, and Invesco also want to offer a
similar instrument.

Although US regulators have rejected such applications in the past, Wall Street
giants are hoping that the current 'negative PR’ around crypto exchanges will
increase the chance of launching fully regulated instruments.

This article was written by Damian Chmiel at www.financemagnates.com.

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