- Binance is still making efforts to comply with BaFin’s standards.
- Beginning in 2020, custody providers and crypto exchanges need a BaFin license.
According to reports, Binance has been notified that BaFin, the German financial regulatory organization responsible for monitoring banks, financial services institutions, insurance companies, and stock exchanges, would not be issuing a crypto custody license to the exchange.
On Thursday, the local media outlet Finance Forward published the news, citing persons acquainted with the subject. However, the article acknowledged that the nature of the refusal is unclear, namely if it was an official decision from BaFin or an intention conveyed during continuing conversations.
Efforts Underway
According to Binance’s statement, the exchange is “unable to share details of conversations with regulators,” but it is still making efforts to comply with BaFin’s standards.
A representative from Binance said:
“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.”
In order to market their services to German consumers and do business inside the country beginning in 2020, custody providers and cryptocurrency exchanges will need a BaFin license. Coinbase Germany received the first BaFin license to operate a cryptocurrency custody platform in June 2021.
According to Wirtschaftswoche, Binance was one of Germany’s largest platforms in February 2023, with as many as 2 million members. Users in Germany may still access and utilize Binance despite the exchange’s lack of a local license.
The news that Binance’s European banking partner Paysafe Payment Solutions plans to withdraw support for the exchange came earlier today, so the refusal of a license would still be a setback for Binance if it were confirmed.
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