Despite CZ stating that Binance is working toward being MiCA-compliant, Germany’s BaFin rejection is the next EU country to have problems with Binance.
German financial regulator, BaFin, rejected Binance’s request for a crypto custody license, which is crucial for the company’s expansion and advertising in Germany, reported Finance FWD, a German crypto publication.
Jonas Jünger, who took over as the head of Binance in Germany a few months ago, had a primary mandate to secure a license from BaFin, Germany’s financial regulator. However, according to insiders, BaFin has decided not to grant the exchange a crypto custody license, a decision that Binance has reportedly been made aware of.
Binance, while not sharing specific details of its discussions with regulators, confirmed that they are actively working to meet BaFin’s requirements. Despite the setback, the company remains confident in its team and measures to continue its dialogue with German regulators:
With over 2 million German customers, Binance reigns as the top exchange in Germany. However, this reported denial could affect Binance’s particularly its advertising efforts, as German law permits only licensed firms to advertise, according to Finance FWD.