Binance, one of the world’s largest cryptocurrency exchanges, has reportedly withdrawn its license application with the Financial Market Authority of Austria, according to sources familiar with the matter cited by FinanceFWD. This move comes as Binance faces mounting regulatory challenges across several European countries and the United States.
The decision to withdraw the license application was made some time ago, with the Austrian regulator allegedly exerting pressure behind the scenes, as reported by FinanceFWD. Binance had established a subsidiary called Binance Austria GmbH last year in an effort to obtain a license for its operations in the country.
However, the withdrawal from Austria adds to a series of recent exits by Binance from European markets. Earlier this month, the exchange announced its departure from the Netherlands after failing to secure regulatory approval. In addition, Binance has applied for deregistration in Cyprus and canceled its registration with the U.K. Financial Conduct Authority. The company is currently under investigation for potential money laundering activities in Italy, Spain, and France.
Belgium’s financial regulator also recently ordered Binance to cease all services in the country, further complicating the exchange’s European operations. Meanwhile, in the United States, Binance is entangled in a legal battle with the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission. Both regulatory bodies have filed lawsuits against Binance and its owner, Changpeng Zhao, alleging violations of federal laws and failure to register the exchange in the U.S.
When approached for comment on the withdrawn Austrian application, a Binance spokesperson told The Block that they were unable to disclose details of their conversations with regulators.
However, they emphasized the company’s commitment to operating in compliance with its obligations wherever Binance operates. The spokesperson also mentioned that Binance’s current focus in Europe is on ensuring full compliance with the requirements of the forthcoming Markets in Cryptoassets (MiCA) regulations, expected to be implemented by the end of next year.
The withdrawal of the license application in Austria highlights the intensifying scrutiny faced by Binance from regulators worldwide. As authorities seek to strengthen regulatory frameworks around cryptocurrencies, exchanges like Binance are encountering increasing hurdles in their operations, necessitating strategic adjustments and compliance measures.
