2023-09-12 13:34:02
The Cyprus Securities and Exchange Commission (CySEC) on Monday confirmed the removal of Binance Cyprus Ltd from the registry of cryptocurrency providers, as the company has not provided any services under Cyprot’s license for more than six months. Binance leaves Cyprus It is important to highlight that Binance already initiated the cancellation of its local unit in Cyprus in June. Despite the fact that the crypto exchange still held the license, it did not provide an explanation as to why it had kept its operation in hibernation until now. Binance received Class 3 registration as a Crypto Asset Services Provider (CASP) from CySEC in October 2022. At the time, it was one of several regulatory registrations for the global crypto exchange within the European Union. It continues to operate in France, Italy and Spain with a license issued by the local regulator. Binance has problems with regulatory authorities Binance, founded in 2017, has become the world’s number one crypto exchange in terms of trading volume. In the early days, the exchange focused on starting operations in most countries without regulatory approval. However, global regulatory pressure and strong headwinds forced it to change its strategy. After that, Europe became one of Binance’s focused markets, and it obtained the license to operate in several countries on the continent. The stock exchange’s decision to pull out of Cyprus came following the US Securities and Exchange Commission (SEC) launched legal action once morest its global unit, its American subsidiary, and its CEO, Changpeng Zhao. The U.S. Commodity Regulatory Authority also filed charges once morest the crypto exchange in a separate lawsuit. The American regulatory measure therefore had a serious impact on Binance’s European business as well. As a result, the exchange soon withdrew from the Netherlands following failing to obtain an official license in the country. The German BaFin also rejected Binance’s license application, so the exchange did not want to continue operating in Germany either. In the meantime, it also transferred its Belgian users to the Polish unit to avoid regulatory pitfalls. In addition, Binance’s French unit is reportedly under investigation for anti-money laundering failures, and authorities have raided their local office. Meanwhile, Binance continues to expand its reach in other jurisdictions, mainly outside of Europe. It launched its services in Japan last month and has also received operating licenses in Dubai and El Salvador.
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