Binance to Deregister as a Service Provider in Cyprus
- A Binance source claimed the exchange never made its services available in Cyprus.
- A Binance spokesperson said the exchange was leaving Cyprus to focus on its companies in the European Union ahead of the implementation of the MiCA regulations.
- On its website, Binance claims that it has licenses and registrations in six countries, including France and Italy.
Crypto exchange Binance looks likely to cease its operations in Cyprus. Reports confirmed on Wednesday that Binance Cyprus submitted a request to be taken off Cyprus’s list of crypto asset providers. Binance said that this move will help it focus on its European operations.
A Binance spokesperson said,
We are working hard to prepare our business to be fully compliant with MiCA when it is implemented in the next 18 months. To that end, we have made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU, especially our larger registered markets where we already have a mature footprint, including France, Italy, and Spain.
The decision comes eight months after Binance received Class 3 registration in Cyprus as a Crypto Asset Services Provider (CASP). At the time, Binance said the registration was another milestone in its “regulatory efforts in Europe and followed similar registrations for Binance’s local entities in France, Italy, and Spain.”
The Cyprus registration enabled Binance to provide services such as spot trading and custody, complying with Cyprus’ anti-money laundering and counter-terrorist financing regulations. Class 3 is the highest level of service provision in Cyprus. It allows its holders to custody crypto assets, serve as a trading platform, manage portfolios, and provide staking services, among other things.
The crypto industry is preparing for the implementation of the Markets in Crypto-Assets (MiCA) law among EU states. Cyprus is an EU member. This means that MiCA enables Binance to move its registration from other European regulators to Cyprus.
Binance’s decision to turn its attention to Europe comes days after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against it, along with its founder, Changpeng Zhao, and the CEO of its supposedly independent U.S. counterpart.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
