Crypto Exchange Binance Requests Deregistration in Cyprus

It has been claimed that Binance Exchange has begun the process of deregistering from Cyprus.

Overview

Binance, the world's largest cryptocurrency exchange, has applied to deregister in Cyprus. The Cyprus Securities and Exchange Commission (CySEC) has marked Binance Cyprus Limited as "Under examination for application for deregistration" on its website.


Binance received Class 3 registration as a Crypto Asset Services Provider (CASP) in Cyprus in October 2022. However, a source at the regulator said on Wednesday that Binance never launched its business in Cyprus.
A Binance spokesperson told Cointelegraph that the company is "working hard to prepare our business to be fully compliant with MiCA [Markets in Crypto-Assets] when it is implemented in the next 18 months." To that end, Binance has decided to pull back efforts in Cyprus to focus on its other companies in the European Union ahead of the rollout of MiCA.
Mica is a landmark piece of legislation that will regulate crypto assets in the European Union. It is expected to come into force in 2024.
Binance's decision to deregister in Cyprus is a sign that the company is taking MiCA seriously. The exchange has been criticized in the past for its lack of regulatory compliance. However, Binance has been making efforts to improve its compliance in recent months.

Read More: Learn the ins and outs of cryptocurrency trading.

It is unclear what will happen to Binance's customers in Cyprus who are currently registered with the exchange. Binance has not yet made any public statements about this issue.
The deregistration of Binance in Cyprus is a significant development in the cryptocurrency industry. It shows that even the largest exchanges are not immune to regulatory scrutiny. It remains to be seen how MiCA will impact the crypto industry in the long term.

It has been claimed that Binance Exchange has begun the process of deregistering from Cyprus. In October of last year, the company obtained a license to operate from the European island. Binance has thus far stuck to its story that it is restricting its activities to within European Union territory.

Registration information can now be found on the Securities and Exchange Commission of Cyprus's website. Officials from Binance have informed the press that the company is changing its organizational structure.

Binance has also insisted that it will operate solely within the European Union. Executives at Binance are reportedly hard at work revising company policy to comply with MiCA regulations.

Over the next 18 months, the exchange plans to institutionalize compliance. Binance has stated that customers in major EU territories including Italy, France, and Spain can also expect reduced service throughout the aforementioned time frame.

Binance Seeks EU Compliance with Regulatory Laws

The Binance exchange has stated repeatedly that it will adhere to any new EU regulations. It's important to remember that before SEC sued, Binance had already submitted a deregistration request.

Binance's spokesman underlined the exchange's deregistration efforts but declined to provide a firm application deadline. The SEC action against Binance and Binance.US, which began last week, has been the subject of much discussion in the cryptocurrency world. Binance is now officially recognized by the Cyprus SEC as a CASP (Crypto Asset Service Provider) thanks to its class 3 registration. This means that in Europe, Binance was fully authorized to offer its services as a spot trading platform, cryptocurrency custodian, staking platform, and card issuer.

Concurrently, the company was responsible for adhering to AML and counter-terror financing regulations. Binance touted the registration as a success for the development of the company at the time. Soon after receiving permission from CySEC, Binance also secured licenses in other European countries like France, Spain, and Italy.

Martin Bruncko, who was in charge of Binance Europe at the time it obtained key operating licenses across Europe, said. Bruncko, Binance's de facto Vice President for Europe, told reporters that the exchange's formal incorporation marks a significant step forward for the company.

He insisted that the company's expansion and development in European regions will be aided by obtaining practice licenses from the relevant regulators. He departed Binance a month ago, as per his LinkedIn profile.

He had previously expressed enthusiasm for establishing a regional team and growing into a leadership role in Cyprus's crypto ecosystem. The blockchain initiative Prometheum, on the other hand, was previously unknown before its colorful testimony in front of the House of Representatives.In a House hearing, Prometheum co-founder Aron Kaplan said that the SEC has provided crystal-clear regulatory guidelines for crypto companies and praised the SEC as the best regulatory agency in the world. The crypto community is outraged by these comments, but banking regulators are on their side.

Read More: How to Profit from Binance Blockchain Technology

Conclusion

In conclusion, Binance's decision to deregister in Cyprus is a sign that the company is taking MiCA seriously. The exchange has been criticized in the past for its lack of regulatory compliance. However, Binance has been making efforts to improve its compliance in recent months.

The deregistration of Binance in Cyprus is a significant development in the cryptocurrency industry. It shows that even the largest exchanges are not immune to regulatory scrutiny. It remains to be seen how MiCA will impact the crypto industry in the long term.

Here are some of the key takeaways from this development:

  • Binance is taking MiCA seriously and is making efforts to comply with the new regulations.
  • The deregistration of Binance in Cyprus is a sign that even the largest exchanges are not immune to regulatory scrutiny.
  • It remains to be seen how MiCA will impact the crypto industry in the long term.

 



 


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