Benzinga - In yet another blow to Binance (CRYPTO: BNB), Bafin, the German financial watchdog, has denied the crypto exchange a much-anticipated license that would have allowed it to operate and expand in the country.
Jonas Jiinger, who recently took over as the head of Binance in Germany, was primarily tasked with ensuring that Binance secures a license from Bafin, local news outlet Finance Forward reported.
This license was pivotal for the crypto giant to conduct operations and engage in promotional activities within Germany.
In an earlier interview with "Börsenzeitung," Jiinger commented on the importance of regulatory compliance, stating, "The regulatory requirements are rightly high."
He also added that obtaining the license "would also send a strong signal to Germany as a financial center."
Binance, however, was apparently unable to satisfy the stringent requirements set by Bafin.
Though the exact details of the decision have not been disclosed, the report stated that Binance has been informed of Bafin's resolution not to grant the exchange the crypto custody license it sought.
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In an emailed statement to Benzinga, a Binance spokesperson said “While we are unable to share details of conversations 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 in place to continue our discussions with regulators in Germany.”
"Binance remains committed to working collaboratively with regulators around the world and we are additionally focused on getting our business ready to be fully compliant with the new EU rules on crypto-assets (MiCA)," the spokesperson added.
This setback in Germany is part of a broader pattern of challenges that Binance is facing across Europe.
With regulatory pressures mounting in countries like the Netherlands, France, and the United Kingdom, Binance has lost licenses and been forced to exit markets.
For instance, under regulatory pressure, Binance withdrew its license application in Austria.
The ongoing lawsuit by the American Securities and Exchange Commission (SEC) against the exchange and its founder Changpeng Zhao is expected to further complicate Binance's global operations.
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