German regulator BaFin has suggested that Binance withdraw its application because it finds its structure complex.
Cryptocurrency exchange Binance has applied for a license to German regulator BaFin. While the process was going on, BaFin made a statement.
German Regulator BaFin recommends Binance withdraw its application
BaFin, the founder of crypto exchange Binance and Germany’s financial regulator, advised him to withdraw his license application, amid concerns about the complex nature of the crypto company. BaFin believed that Changpeng Zhao, the founder of Binance, would not have passed an “appropriate and appropriate” test of whether he was fit to run or own a business he was auditing.
It was previously reported that Binance announced that it was proactively withdrawing its application for various reasons. However, regulatory authority BaFin’s concerns were not disclosed.
Binance and CEO Zhao were previously accused by the Securities and Exchange Commission (SEC) of running an illegal US exchange, engaging in misleading regulators and manipulative trading. Binance has denied these allegations.
Binance has tried to license its crypto trading platform, which it made available all over the world before getting permission, in various countries in recent years. However, it ran into problems with some regulators in Europe.
Binance’s complex corporate structure makes it difficult for regulators to pinpoint their location or who has regulatory authority. In its lawsuit, the SEC stated that Zhao directly or indirectly controls many Binance entities.
Binance does not have an official global headquarters and has stated that it will continue to obtain the necessary regulatory approvals to actively do business in Germany, with a commitment to continuing to cooperate with regulators. However, these events are still a developing process and more details and clarifications are awaited.
