Binance plans to lift crypto trading license in Cyprus following SEC lawsuit…
SEC defendant Binance takes critical decision for Cyprus
According to the Cyprus Securities and Exchange Commission (CYSEC) website, Binance plans to revoke its crypto trading license in the region. The leading exchange has applied for deregistration as a cryptocurrency service provider today. According to sources, it was the Cyprus arm of Binance that submitted the offer. The exchange wants to revoke its trading license before starting its operations in the Cyprus region…
BINANCE'S CYPRUS UNIT HAS APPLIED TO DEREGISTER AS CRYPTO ASSET SERVICE PROVIDER IN CYPRUS – SECURITIES REGULATOR WEBSITE
— *Walter Bloomberg (@DeItaone) June 14, 2023
Binance received the crypto trading license registration in Cyprus in October 2022. According to Reuters, spot trading, crypto custody, etc. Although it has the right to provide services, it has never started its activities in the said region.
Binance’s critical decision comes shortly after the SEC lawsuit on June 5. The US regulator SEC also sued Coinbase on similar grounds a day after the Binance lawsuit.
Binance turns to MiCA law
Binance said it wants the Cyprus unit to be deregistered as a crypto service provider to focus on meeting the requirements of the European Union’s cryptocurrency law MiCA legislation. The Cyprus Securities and Exchange Commission website says the exchange is “under scrutiny for a deregistration application” without giving any reason. A Binance spokesperson told CoinDesk:
We are working hard to prepare our business to be fully MiCA compliant when implemented in the next 18 months. To this end, we have decided to withdraw our efforts in Cyprus to focus our efforts on a smaller number of regulated entities in the EU.
CZ said they would gladly support MiCA
MiCA, a new law on cryptocurrencies in the EU, was published in the official gazette last week. This new regulation aims to regulate the operation of cryptocurrencies and their exchanges within the EU. cryptocoin.comAs we reported, Binance CEO CZ stated that they would support the regulation before it was officially approved.
The European Parliament voted for MiCA to be implemented.
This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation.
The fine details will matter, but overall we think this is a pragmatic solution to…
— CZ 🔶 Binance (@cz_binance) April 20, 2023
MiCA’s goal is to make cryptocurrencies more transparent, secure and regulated. The law seeks to broaden the definition of cryptocurrencies. It also provides an appropriate regulatory framework for issuing and managing entities. MiCA’s regulations include licensing crypto-asset service providers. In addition, there are issues such as meeting capital adequacy requirements, meeting its obligations and protecting client assets. Additionally, an EU-wide passport mechanism will be provided to crypto-asset service providers. Thus, a license obtained in a single member country may also be valid in other countries.
