Binance, the world’s leading cryptocurrency exchange, has filed a request to rescind the registration of its Cyprus unit as a crypto service provider. The move aims to redirect the company’s focus towards fulfilling the requirements of the European Union’s forthcoming Markets in Crypto Assets (MiCA) legislation.
This decision comes in the wake of Binance facing a lawsuit from the U.S. Securities and Exchange Commission (SEC), which alleged violations including operating without registration and offering unregistered securities. In response, Binance is proactively taking steps to ensure regulatory compliance and align with evolving industry standards.
Binance’s Cyprus unit, which obtained registration as a crypto asset service provider (CASP) in October of last year, was authorized to provide services such as spot trading, custody, staking, and card services within Cyprus. However, the exchange has now withdrawn its operations in Cyprus to concentrate on fewer regulated entities within the European Union (EU).
By reallocating resources and narrowing its focus, Binance aims to strengthen its compliance measures and ensure adherence to the forthcoming MiCA regulations. Also, the exchange remains committed to fulfilling its obligations and complying with applicable laws across the European Union.
The deregistration application submitted by Binance’s Cyprus unit is reflected on the Cyprus Securities and Exchange Commission’s website, stating that the exchange is currently “under examination for application for deregistration.” Although the deregistration request’s specific timing is unclear, it appears that Binance never initiated its business operations in Cyprus despite obtaining initial registration.
Binance shifts focus to larger European markets
The decision to shift away from Cyprus is part of Binance’s broader strategy to concentrate its efforts on larger European markets where the exchange already has an established presence. The spokesperson explained that the company would be directing its resources towards fewer regulated entities in the EU, focusing on established markets like France, Italy, and Spain.
As Binance confronts ongoing legal challenges and regulatory scrutiny, the exchange reaffirms its determination to defend itself against the SEC’s allegations vigorously.
Furthermore, the company emphasizes its existing licenses and registrations across multiple European Union states, positioning itself well to navigate the evolving regulatory landscape and ensure compliance with applicable laws.
By adapting its operational focus and strengthening its compliance endeavors, Binance aims to establish a solid foundation for sustainable growth and continued participation in the ever-evolving digital asset landscape within the European Union.