Binance Tries To Write Out Cypriot Subsidiary

Exchanges

Cryptocurrency exchange Binance, which obtained its 7th legal license in the European Union region in January, has applied for the deregistration of its local unit in Cyprus. The exchange was granted a Cypriot license to operate as a provider of crypto asset services in October last year.

“Binance Cyprus Limited is under investigation for a deregistration request,” reads Binance’s profile on the Cyprus Securities and Exchange Commission (CySEC) website. However, the Cypriot watchdog has not explained why the exchange is trying to withdraw its local unit in the island country.

The move to pull out of Cyprus comes as Binance and rival Coinbase come under regulatory scrutiny in the United States. Earlier this month, the US Securities and Exchange Commission (SEC) sued Binance and Changpeng Zhao, its CEO, alleging that the exchange and its chief operated crypto exchanges (Binance.com and Binance.US) and offered unregistered securities .

While CySEC did not explain on its website why Binance left the jurisdiction, a Binance spokesperson told CoinDesk that the exchange decided to pull the plug on its services in the country to focus its efforts on its “less regulated entities in the EU”.

The cryptocurrency exchange further explained that it was preparing its company to comply with the landmark crypto rules, Markets in Crypto Assets (MiCA), which was recently ratified by the two legislative bodies of the European Union. The law is expected to go into effect sometime in 2024.

MiCA has been described as the world’s first all-encompassing crypto law. The regulation aims to protect European consumers, enshrine environmental sustainability and prevent money laundering in the crypto industry.

When it goes into effect next year, MiCA will require digital asset exchanges and crypto wallet providers to obtain a license to operate in any country in the European Union region. It also requires stablecoin issuers to maintain adequate reserves.

Meanwhile, as the SEC case against Binance continues in the United States, the cryptocurrency exchange is making an effort to keep the operations of its local unit in the country from crumbling. However, the exchange exited Canada last month, blaming the country’s requirements around stablecoins and investor limits.

On the contrary, Binance re-entered the Japanese crypto market in May despite the withdrawal of its rivals from the country. This while the exchange announced plans to transition its Japan-based clients to its new locally compliant platform by the end of the year.

CONSOB blacklists four; Vantage’s marketing manager leaves; read today’s news nuggets.

Cryptocurrency exchange Binance, which obtained its 7th legal license in the European Union region in January, has applied for the deregistration of its local unit in Cyprus. The exchange was granted a Cypriot license to operate as a provider of crypto asset services in October last year.

“Binance Cyprus Limited is under investigation for a deregistration request,” reads Binance’s profile on the Cyprus Securities and Exchange Commission (CySEC) website. However, the Cypriot watchdog has not explained why the exchange is trying to withdraw its local unit in the island country.

The move to pull out of Cyprus comes as Binance and rival Coinbase come under regulatory scrutiny in the United States. Earlier this month, the US Securities and Exchange Commission (SEC) sued Binance and Changpeng Zhao, its CEO, alleging that the exchange and its chief operated crypto exchanges (Binance.com and Binance.US) and offered unregistered securities .

While CySEC did not explain on its website why Binance left the jurisdiction, a Binance spokesperson told CoinDesk that the exchange decided to pull the plug on its services in the country to focus its efforts on its “less regulated entities in the EU”.

The cryptocurrency exchange further explained that it was preparing its company to comply with the landmark crypto rules, Markets in Crypto Assets (MiCA), which was recently ratified by the two legislative bodies of the European Union. The law is expected to go into effect sometime in 2024.

MiCA has been described as the world’s first all-encompassing crypto law. The regulation aims to protect European consumers, enshrine environmental sustainability and prevent money laundering in the crypto industry.

When it goes into effect next year, MiCA will require digital asset exchanges and crypto wallet providers to obtain a license to operate in any country in the European Union region. It also requires stablecoin issuers to maintain adequate reserves.

Meanwhile, as the SEC case against Binance continues in the United States, the cryptocurrency exchange is making an effort to keep the operations of its local unit in the country from crumbling. However, the exchange exited Canada last month, blaming the country’s requirements around stablecoins and investor limits.

On the contrary, Binance re-entered the Japanese crypto market in May despite the withdrawal of its rivals from the country. This while the exchange announced plans to transition its Japan-based clients to its new locally compliant platform by the end of the year.

CONSOB blacklists four; Vantage’s marketing manager leaves; read today’s news nuggets.


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