The license that cryptoexchange Binance in Germany to advertise and expand has been rejected by the German watchdog (BaFin). That reports the German newspaper FinanceFWD. Binance is still available to German users, but the company is now unable to expand and is not allowed to advertise.
License denied Binance
BaFin, in full Bundesanstalt für Finanzdienstleistungsaufsichthas the crypto custody license applied for by Binance has been rejected. That does not mean that German users can no longer trade on the crypto exchange. The platform is still available to the more than 2 million users that Binance has in Germany. However, the company is now limited in how far they can expand Binance in Germany. They are also not allowed to advertise in the country.
According to German Binance boss Jonas Jünger, the requirements are rightly high. If Binance’s license were accepted in Germany, the company would send a very solid signal to the German market. For now, the legal requirements for Binance are too high. In the meantime, Binance is doing everything it can to comply with the strict guidelines. According to a spokesperson, it is “an ongoing process” that they are currently “continuing to work on”. The refusal does not mean that obtaining a permit will no longer be possible in the future.
Binance under fire, pulls out
Binance is struggling in more countries when it comes to licensing. The day before yesterday, all the news broke that Binance is withdrawing from Austria. The company also stopped Belgium and The Netherlands by failure to obtain permits. In addition, the company is under fire in countries such as France and Brazil. The reason behind this withdrawal is the court case between Binance and the US Securities and Exchange Commission (SEC). This lawsuit was filed because Binance did not have the proper licenses to trade what the SEC’seffects‘ calls. To avoid further lawsuits, Binance is now doing everything it can to comply with the guidelines in other countries. Unfortunately, sometimes that means Binance has to leave a country, as is the case here.