The German Federal Financial Supervisory Authority (BaFin) will not issue a license to Binance to provide custody services for cryptocurrencies. It is reported by Finance Forward, citing sources.
The publication does not know whether the refusal was formalized or the department made it clear during negotiations with the company.
A spokesman for BaFin declined to comment, citing internal management policies.
“While we cannot share details of our discussions with regulators, we continue to work towards meeting BaFin’s requirements. We are confident that we have the appropriate team and measures in place to continue our negotiations with the German regulatory authorities,” Binance said.
Journalists noted that the lack of approval from the regulator means a ban on advertising services, which could affect growth in the long term. The Binance crypto application operates in the country and is one of the largest in terms of the number of users – about 2 million.
On June 5, the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange and its CEO, Changpeng Zhao. Against this background, regulatory pressure on the company in Europe increased.
Binance withdrew applications for licenses in the UK, Austria, Cyprus, announced its withdrawal from the Netherlands. The Belgian Financial Services and Markets Authority ordered the exchange to immediately stop providing services.
According to CoinDesk, Binance’s European banking partner, Paysafe Payment Solutions, will stop servicing the platform from September 25th.
“Our users will need to update the bank details used to make deposits on Binance and may need to accept the new terms and conditions in order to continue using the services. SEPA after this date,” the crypto company confirmed.
Recall that in November 2022, BaFin ordered the German division of Coinbase to “ensure the proper organization of the business”, indicating a violation of the law.
In June, the SEC filed a lawsuit against the American crypto exchange a day after making claims against Binance.
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