Binance’s Cyprus unit has submitted an application for removal from Cyprus’ register of crypto asset service providers, according to the securities regulator’s website. The move comes as Binance aims to concentrate on its larger European businesses and prepare for the upcoming implementation of the European Union’s crypto asset regulations (MiCA).
Although the exact date of Binance’s deregistration application remains unclear, it is known that the exchange, recognized as the world’s largest, announced its registration with the Cyprus Securities and Exchange Commission in October 2022. However, a source within the regulatory body revealed that Binance never initiated its operations in Cyprus.
The Cyprus registration initially enabled Binance to offer various services, including spot trading and custody, in compliance with the country’s anti-money laundering and counter-terrorist financing regulations. The spokesperson for Binance explained that the decision to withdraw from Cyprus was made to prioritize efforts on a select number of regulated entities within the European Union, with a specific focus on established markets such as France, Italy, and Spain. Binance expressed its commitment to complying with the applicable laws of the European Union.
Recently, Binance encountered legal challenges, as the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the exchange, its founder Changpeng Zhao, and the operator of its purportedly independent U.S. exchange. Binance has asserted its intention to vigorously defend itself against the SEC’s charges.
Highlighting its continued presence in the European market, Binance emphasized that it possesses licenses and registrations across six European Union states, including France and Italy.
As Binance’s Cyprus unit seeks to be removed from the register of crypto asset service providers, the exchange remains determined to adapt and comply with evolving regulatory frameworks, positioning itself strategically within the European Union’s crypto landscape.
