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German Regulator BaFin Reportedly Denies Binance’s Crypto Custody License Application

According to a report from Finance Forward, Germany’s financial watchdog, the Federal Financial Supervisory Authority (BaFin), has decided not to grant a custody license to the crypto exchange Binance. The news remains unclear as to whether this denial was a formal decision or an expressed intention in ongoing discussions.

In response to the report, a Binance spokesperson stated that they are actively working to comply with BaFin’s requirements in a detailed and ongoing process. While they couldn’t disclose specific details of their conversations with regulators, they expressed confidence in their team and measures to continue discussions with German authorities.

BaFin, adhering to professional secrecy requirements in Germany, declined to comment on individual companies.

Earlier this month, Binance reportedly withdrew its application for regulatory approval in Austria and gave up its registration with Cyprus’ securities regulator. The company also decided to cease operations in the Netherlands following an unsuccessful attempt to register, and it received an order to halt operations in Belgium. Additionally, Binance is facing allegations from the U.S. securities regulator for allegedly operating an unregistered trading platform.

Binance has stated that it is streamlining its European strategy in anticipation of the new crypto regulation in the EU. The company aims to obtain regulatory approval in one of the EU markets, enabling it to operate throughout the single market.

The spokesperson for Binance emphasized the company’s commitment to collaborating with regulators worldwide and their focus on ensuring compliance with the upcoming EU rules on crypto-assets, known as MiCA.

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