Binance Hit Hard Again—Is It All Over?• June 29, 2023 10:32 am • Comments
The current, coordinated assault against Binance continues. …
Just yesterday, ProCoin News reported that the world’s largest centralized cryptocurrency exchange lost its banking partnerships in Australia—with just a mere 12-hour notice.
Now the company is facing increased regulatory pressure in Germany. …
According to sources, Binance not only failed to acquire a custody license from the German authorities but has lost its payment processor, Paysafe, as well.
Colin Wu reports, “According to FinanceFWD, the German Financial Supervisory Authority (BaFin) has made an internal decision not to grant the cryptocurrency custody license to Binance, and it is not allowed to advertise in Germany. Binance has previously withdrawn its license application to Austrian and canceled its license applications in Cyprus and the United Kingdom.”
According to FinanceFWD, the German Financial Supervisory Authority (BaFin) has made an internal decision not to grant the cryptocurrency custody license to Binance, and it is not allowed to advertise in Germany. Binance has previously withdrawn its license application to…
— Wu Blockchain (@WuBlockchain) June 29, 2023
Fahad Faqeeh took the opposing viewpoint and claimed that all the recent developments affecting Binance won’t have much of a long-term effect on the company.
Faqeeh chalked it all up to fear, uncertainty, and doubt—using the number 4 as a connotation for avoiding FUD.
— Fahad Faqeeh (@FahadFaqeeh65) June 29, 2023
The Block highlights regulatory pressure coming from Germany’s Financial Supervisory Authority:
BaFin’s denial was reported by the news publication FinanceFWD yesterday. However, the report said it remained unclear whether it was a formal decision or an intention to deny, citing people familiar with the matter.
“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,” a Binance spokesperson told The Block in an emailed statement.
BaFin, German Financial Supervisory Authority internaly decided to not grant cryptocurrency custody license to Binance and they are not allowed to advertise in Germany🇩🇪
— Sooraj (@soorajpalari) June 29, 2023
It's unfortunate to hear that Binance's application for a crypto custody license has been rejected by the Federal Financial Supervisory Authority of Germany. This decision could have significant implications for the future of cryptocurrency regulation. https://t.co/T6K7jwCA06
— Adonis Weber 📈⛏️ (@Adonis_Weber) June 29, 2023
Crypto Slate had more on the loss of Paysafe as a payment processor:
A Paysafe spokesperson corroborated the development to CryptoSlate in a June 29 email, saying that the firm had taken “the decision to cease offering our embedded wallet solution to Binance across the European Economic Area (EEA) region.”
The Paysafe spokesperson added:
“Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months.”
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