Binance has faced another setback stalking Coded nursery license in Germany. The company’s application, submitted to BaFin, the country’s financial watchdog, was ultimately rejected.
It is not currently clear if the rejection is an official decision from BaFin or just a signal expressed during the ongoing discussions.
The cryptocurrency exchange confirmed the news, stating:
We continue to work to comply with BaFin’s requirements. As expected, this is a detailed and ongoing process. We are confident that we have the right team and measures in place to continue our discussions with regulators in Germany.
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Due to professional confidentiality requirements in Germany, BaFin is unable to provide detailed comments on individual companies, including Binance. However, recent reports indicate that Binance has faced challenges in several European countries.
Binance is facing increasing challenges in Europe
This week, Binance, the world’s largest cryptocurrency exchange, made a series of significant moves in Europe. Withdrew her application for an operating license in Austria and suspended her registration process in Cyprus.
In addition, the company decided to exit the Dutch market after an unsuccessful attempt to obtain a permit. Recent reports from France indicated that the exchange is currently under investigation for possible involvement in money laundering activities within the country.
The exchange was also ordered to cease its operations in Belgium. Furthermore, Binance is currently facing allegations from the US Securities Regulatory Authority for allegedly operating an unregistered trading platform.
The exchange has announced plans to streamline its European strategy in anticipation of the upcoming crypto regulation in the European Union. This new regulation will enable cryptocurrency companies to operate across a single market by obtaining regulatory approval in any of those markets.
Following recent regulatory challenges in the US, Binance CEO Changpeng Zhao has expressed his renewed focus on the European market and ensuring compliance with crypto asset regulations (MiCA) in the market.
The recent challenges faced by Binance highlight the increased scrutiny being placed on cryptocurrency exchanges around the world.
Binance to lose support for Euro Banking Partner
In another setback for the crypto exchange, its European banking partner, Paysafe, has decided to stop supporting euro-denominated bank transfers to and from the crypto platform.
This means that Binance will lose access to this particular service provided by Paysafe. The termination of this partnership adds to the challenges and restrictions Binance faces in its European operations.
Paysafe reported:
After a strategic review, we have made the decision to stop offering our integrated wallet solution to Binance across the region.
Despite the discontinuance of bank transfers denominated in Euros by Paysafe, Binance has announced its intention to find an alternative provider.
The exchange assured users that deposits, withdrawals, and trading of other fiat currencies on its platform, as well as trading in cryptocurrencies, will continue without interruption. It is also actively seeking a new solution to facilitate Euro transactions and maintain smooth operations for its users.
Featured image from CNBC, chart from TradingView.com
