Binance Withdraws Crypto License Application with German Regulator BaFin

Binance has withdrawn its application for a crypto license in Germany, following reports that the German financial regulator had denied the exchange a crypto custody license.

In a statement given to Decrypt, a Binance spokesperson said, "Binance confirms that it has proactively withdrawn its BaFin application."

Media reports from last month indicated that BaFin, the German financial regulatory authority, had denied Binance's application for a crypto custody license.

At the time, a Binance spokesperson stated their commitment to work with regulators and continue discussions with the German authorities. However, today, they confirmed that they have decided to withdraw their application altogether.

Binance and European regulators

Binance has recently withdrawn license applications in Austria, the Netherlands and Cyprus, and last month lost its partnership with European banking partner PaySafe. The exchange also faces an investigation by French authorities, which accuse Binance of “acts of aggravated money laundering.”

Outside Europe, the exchange has received restrictions from Australia on operating a derivatives exchange and ceased operations in Canada.

Binance has previously mentioned that it plans to fully comply with European Union’s Markets in Crypto Assets (MiCA) legislation, set to be implemented next year. However, for the time being, it has had to withdraw from major countries in Europe and even outside of it.

In its statement to Decrypt, Binance claimed that the exchange still intends to apply for appropriate licensing in Germany, but noted that, “The situation, both in the global market and regulation has changed significantly,” and that it is “essential that our submission accurately reflects these changes."