June 27, 2023

Binance Withdraws License Application in Austria

Published: June 27, 2023 at 7:00 am Updated: June 27, 2023 at 6:09 am

Edited and fact-checked: June 27, 2023 at 7:00 am

In Brief

Binance, the world’s largest cryptocurrency exchange, is facing setbacks in its expansion efforts in Europe. It has recently withdrawn its license application from the Austrian financial regulator FMA.

The world’s largest cryptocurrency exchange Binance has withdrawn its licensing application in Austria, marking another blow to its expansion plans in Europe. The move follows allegations of undisclosed pressure from the Austrian financial supervisory authority, the Financial Market Authority (FMA).

Binance has withdrawn its license application in Austria

The news comes amidst increased scrutiny of Binance in several countries, including the U.S., where the Securities and Exchange Commission (SEC) has filed a lawsuit against the company. Moreover, Binance has been finding it difficult to acquire licenses across various European jurisdictions.

A year ago, the company announced its intention to enter the Austrian market and establish a subsidiary, Binance Austria GmbH, aiming to obtain a license for this entity as a “service provider in relation to virtual currencies.”

While not sharing specific details about the withdrawal, a Binance spokesperson stated that the company remains committed to complying with regulations in all jurisdictions where it operates. The spokesperson also hinted at the possibility of re-entering the European market in the future, emphasizing their focus on complying with the upcoming MiCA (Markets in Crypto-Assets) requirements.

Binance in Europe

Presently, the exchange holds licenses in a few European countries, including France, Italy, Spain, Poland, Sweden, and Lithuania. In a surprising move, CEX decided to retain listings for certain privacy coins for European traders, including decred, dash, zcash, PIVX, navcoin, secret, and verge, across France, Italy, Poland, and Spain.

Despite facing setbacks and dwindling spot trading market figures, Binance continues to explore other expansion opportunities. It recently expressed interest in the United Arab Emirates (UAE), praising the country’s well-defined crypto regulations and supportive stance towards the cryptocurrency industry. With legal challenges from regulators in the U.S. and Europe, the regulatory environment in the UAE presents an attractive alternative for Binance.

Binance US has suspended USD deposits and is preparing to pause USD fiat withdrawals from June 13. SEC’s motion only applies to the US Binance platform.

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Nik Asti