The Cyprus Securities and Exchange Commission (CySEC) confirmed yesterday (Monday) the deletion of Binance Cyprus Ltd from the Register of Service Providers of Crypto-assets as the company did not provide any services under the Cyprot license for more than six months continuously.
Binance Exits Cyprus
Last June, Binance, initially moved for the deregistration of its local unit in Cyprus. However, despite holding the license, the crypto exchange giant did not provide any clarification behind keeping the Cypriot entity dormant.
Binance received the Class 3 registration as a Crypto Asset Services Provider (CASP) from CySEC in October 2022. At that time, it was one of the many regulatory registrations of the global crypto exchange within the European Union. It is still regulated in France, Italy, and Spain.
Binance’s Troubles with Regulators
Established in 2017, Binance became the top global crypto exchange in terms of trading volume. Though the exchange focused on entering most jurisdictions in its early days without any regulatory approval, the regulatory backlash against it globally forced it to change its strategy. Europe became one of the focused markets for Binance as it obtained several licenses across the continent.
The exchange’s decision to exit Cyprus occurred after its global entity, its American arm, and its CEO, Changpeng Zhao, were named in a lawsuit brought by the US Securities and Exchange Commission (SEC). The US commodities regulator additionally charged the exchange in a separate lawsuit.
The wake of the regulatory action in the US further impacted the European business of Binance. Consequently, the exchange exited The Netherlands as it failed to secure a license in the country. Germany’s BaFin likewise rejected a license application of Binance, ending the exchange’s ambition to operate in the country. It even transferred its Belgium users to the Polish entity to avoid any regulatory hiccups. On top of that, the French entity of Binance is reportedly under investigation for lapses around anti-money laundering and was raided by the authorities.
Meanwhile, Binance still continues to expand its reach in other jurisdictions. It launched services in Japan last month and received operational licenses in Dubai and El Salvador.
This article was written by Arnab Shome at www.financemagnates.com.
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