Binance Cyprus Division Applies To Be Delisted As Crypto Service Provider: Here's Why
Binance will continue to observe and adhere to the applicable laws of the European Union.
Binance's division in Cyprus has submitted an application to be delisted from Cyprus' registry of crypto asset service providers, according to information displayed on the securities regulator's website on Wednesday. Binance stated that this move would enable the company to concentrate on its larger European operation, as reported by Reuters.
The exact date of Binance's deregistration application remains unclear. Although the exchange, recognised as the world's largest, disclosed its registration with the Cyprus Securities and Exchange Commission in October 2022, a source within the regulatory authority revealed that Binance never initiated its operations in Cyprus.
The registration in Cyprus granted Binance the ability to provide spot trading, custody services, and other offerings while adhering to the country's regulations concerning anti-money laundering and counter-terrorist financing, as the exchange had previously communicated on its website.
A spokesperson for Binance explained that the decision to withdraw from Cyprus was made to streamline efforts towards its other entities within the European Union in preparation for the implementation of the EU's crypto asset regulations (MiCA).
"Our priority is to ensure full compliance with MiCA within the next 18 months. Consequently, we have chosen to realign our focus from Cyprus and allocate our resources to a smaller number of regulated entities in the EU, with a particular emphasis on our established markets such as France, Italy, and Spain," stated the spokesperson.
The spokesperson further added, "Binance will continue to observe and adhere to the applicable laws of the European Union."
In recent developments, Binance and its founder Changpeng Zhao, along with the operator of its purportedly independent U.S. exchange, faced a lawsuit from the U.S. Securities and Exchange Commission (SEC). Binance announced its firm intent to vigorously defend itself against the charges brought forth by the SEC.
Binance also highlighted on its website that it holds licenses and registrations across six European Union member states, including France and Italy.
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