Germany’s financial watchdog, BaFin, has reportedly rejected Binance’s application for a custody license.
Regulatory Challenges of binance in Germany
The specifics of this decision remain unclear, with sources suggesting it could be an intention to deny rather than a formal decision. Binance, however, remains optimistic, stating that they are working diligently to meet BaFin’s requirements.
Paysafe Ends Support for Binance
In another setback, Binance’s banking partner for euro transactions, Paysafe, has announced it will cease support for the exchange from September 25. This decision, a result of a strategic review, will affect euro-denominated bank transfers via the SEPA network.
Binance’s Assurance to Customers Amid Changes
Despite these challenges, Binance assures its customers that other fiat currencies and services on Binance.com remain unaffected. From September 25, users will need to update their banking details and may need to accept new terms to continue using SEPA services.
Binance’s Regulatory Struggles Across Europe
Binance’s regulatory issues extend beyond Germany. The exchange recently announced its exit from the Netherlands due to regulatory hurdles, and it’s also under investigation in France for alleged money laundering. Binance has also withdrawn its license application in Austria and has been ordered to stop services in Belgium.
Binance’s Commitment to Compliance Amid Challenges
Despite these setbacks, Binance remains committed to working with regulators globally. The exchange is also preparing to be fully compliant with the new EU rules on crypto-assets (MiCA).
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