Germany’s Federal Financial Supervisory Authority (BaFin) has denied a license to Binance, according to reports.
The world’s largest crypto exchange Binance is surrounded by regulatory challenges from different jurisdictions. A rejection from Germany is only compounding the company’s woes.
Binance Faces Setback in Germany
According to Finance Forward, Binance had been trying to win a BaFin license in Germany under the leadership of managing director Jonas Jünger.
But Finance Forward’s sources informed that BaFin had denied the license to Binance. Without the license, Binance cannot scale and advertise in Germany. BeInCrypto reported in 2019 that it would be compulsory for crypto firms typo acquire a BaFin license to operate in the German market.
However, the news publication mentioned that it is unclear “if it is a formal cancellation or whether the supervisors have expressed their intention in the ongoing talks.” A Binance spokesperson said:
“While we cannot share details of our discussions with regulators, we are continuing to work to meet BaFin requirements. It is an ongoing process, it continues.
We are confident that we have the right team and the appropriate measures in place to continue our discussions with the regulators in Germany.”
Of late, Binance has been in regulatory trouble in several countries, such as Australia, Canada, Nigeria, Netherlands, and Belgium.
The company also faces lawsuits from the Securities and Exchange Commission (SEC), and the Commodities Futures Trading Commission (CFTC) in the US market.
Check out our article on the 7 best Binance alternatives here.
Due to these many challenges, Binance’s market share is sitting close to its yearly lows. BeInCrypto reported that the market share declined from 65.9% in January to 56.4% in May, and finally to 55.9% in June 2023.
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