Binance Holdings Ltd., branded Binance, is a global company that operates the largest cryptocurrency exchange in terms of daily trading volume of cryptocurrencies. “Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high frequency trading software,” said Wikipedia.
Binance (CRYPTO: BNB) has withdrawn its application for a crypto license in Germany. The move comes as the firm reconsiders its global expansion strategies due to increasing regulatory challenges.
Understanding The Regulatory Backdrop: The decision was prompted by German regulators’ refusal to grant Binance a crypto custody license, as reported last month. The firm also recently exited the Netherlands, failing to meet that country’s necessary registration requirements. Adding to the regulatory difficulties, Binance is under investigation in France.
Wikipedia reports that Binance was initially based in China before moving its headquarters out of the country shortly before the Chinese government imposed regulations on cryptocurrency trading.
“In 2021, Binance was put under investigation by both the United States Department of Justice and Internal Revenue Service on allegations of money laundering and tax offenses.The UK’s Financial Conduct Authority ordered Binance to stop all regulated activity in the United Kingdom in June 2021,” said Wikipedia.
“That same year, Binance shared client data, including names and addresses, with the Russian government,” Wikipedia added.
A spokesperson from Binance confirmed the withdrawal with CoinDesk, citing significant changes in the global market and regulations.
“Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes,” the spokesperson reportedly said.
Binance Accused Of ‘Web of Deception’: The U.S. Securities and Exchange Commission recently accused the exchange and its CEO Changpeng Zhao of operating a “web of deception.” Despite the company’s firm denial of these charges, the ongoing legal and regulatory pressure cannot be ignored.
Mass Layoffs Amid Uncertainty: Binance recently laid off more than a third of its global workforce. Various departments, including customer service, have been affected, intensifying the cloud of uncertainty surrounding the future of the company.
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich
Get news, handpicked just for you, in your box.
