BaFin Report: German Regulator Rejects Binance Crypto Custody Licence Application

BaFin, also known as the Federal Financial Supervisory Authority of Germany, serves as the principal governing body responsible for overseeing and regulating financial institutions and markets within the country. As an autonomous federal agency, BaFin operates under the supervision of the German Ministry of Finance, exercising its authority in the realm of financial supervision and control.

Germany’s financial regulator, known as BaFin, has chosen not to give Binance, a cryptocurrency exchange, a license to hold and safeguard digital assets. This decision was reported by Finance Forward, a news outlet, which cited sources familiar with the situation.

According to the report, it remains uncertain whether the rejection of Binance’s custody license application was an official decision made by the Federal Financial Supervisory Authority (BaFin) or merely an expressed intention discussed during ongoing conversations.

A spokesperson from Binance responded to the situation by stating that they cannot provide specific details about their discussions with regulators. However, they assured that they are actively working to meet BaFin’s requirements. They acknowledged that the process is complex and ongoing, but they are confident in their team and their measures to continue engaging with German regulators.

According to a report from Finance Forward on June 26, Binance, a cryptocurrency exchange, withdrew its application for regulatory approval in Austria. Additionally, the company has decided to end its registration with the securities regulator in Cyprus and has chosen to leave the Netherlands following an unsuccessful attempt to register. Furthermore, Binance was instructed to stop its operations in Belgium. These developments come as the company faces allegations from the U.S. securities regulator for allegedly running an unregistered trading platform.

BaFin maintained its silence on specific companies as it is obligated to adhere to professional secrecy requirements in Germany.

The spokesperson for Binance expressed their dedication to cooperating with regulators globally and emphasized their efforts to ensure full compliance with the new European Union regulations regarding crypto-assets,known as MiCA.

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