Just a few minutes ago, Binance, the world’s largest crypto exchange by volume, received another rejection according to an announcement. This is not the first negative response this crypto giant has received from the West. As trillion-dollar companies in the US and Europe begin to slide into the crypto field, they are starting to take a harder stance against the Binance exchange.
Application Denied by Binance
As recently announced by Finance Forward, Germany’s financial watchdog has decided not to grant a custody license to crypto exchange Binance. The source-based news is uncertain whether this is an official decision by the Federal Financial Supervisory Authority (BaFin) or just an expressed intention in ongoing discussions.
A Binance spokesperson said the following:
“While we cannot share the details of our discussions with regulators, we continue to work to comply with BaFin’s requirements. As expected, this is a detailed and ongoing process. We are confident that we have the right team and measures to continue our discussions with regulators in Germany.”
Binance and Regulatory Pressure
On June 26th, Finance Forward reported that Binance had withdrawn its regulatory approval application in Austria. The company also decided to give up registering with the securities regulator in South Cyprus and decided to leave the Netherlands after a failed registration attempt. It was also ordered to cease operations in Belgium, facing accusations from the US securities regulator for allegedly operating an unregistered trading platform.
Binance stated that it was reorganizing its European strategy in preparation for the EU’s new crypto regulations, which would allow crypto firms to operate in a single market after receiving regulatory approval in one of these markets.
However, according to speculators, space is opening up for Western trillion-dollar giants entering the crypto realm. German giant Deutsche Bank recently applied for a crypto custody service following BlackRock’s application.
On the other hand, while the US and EU might try to push the Binance exchange out of their regions in the worst-case scenario, we should not overlook the increasing pace of crypto adoption in Asia. If Binance continues to be excluded from the West, we may see a bipolar structure in the crypto field.