Binance in talks with BaFin to get license in Germany
Changpeng Zhao (CZ), founder and CEO of Binance has confirmed that they are in talks with Germany’s regulators to secure a local crypto license.
The move marks the first time a major ‘unregulated’ exchange has made a move toward such a coveted licence in Europe’s largest economy.
“We hope to get a licence in Germany. Our team is definitely talking to regulators and based on secondary feedback the conversations are going well,” CZ said while speaking at the Finance FWD Conference in Hamburg.
If approved, the move would boost Binance’s ambitions in Europe after it has been on shaky ground last year, with regulators in the UK and elsewhere putting the exchange under intense scrutiny.
To encourage regulated business within the crypto industry, Germany adopts a licensing scheme for digital assets services after the amendment it introduced two years ago to the EU’s Money Laundering Directive.
Any business wishing to offer cryptocurrency services in Germany must first seek approval from the Federal Financial Supervisory Authority, also known as BaFin. US popular exchange Coinbase was the first crypto native startup to be approved by the BaFin in 2021, followed by the Berlin-based financial technology firm Upvest.
The news comes shortly after Binance registered its services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
Binance upgrades its regulatory profile
After a year of heavy regulatory scrutiny, the new approval will help the crypto giant in boosting its operational plans across the European continent. Binance CEO also said he expects the world’s largest cryptocurrency hub to become a London-registered crypto asset firm in six to 18 months.
The new license allows Binance to offer regulated services under legislation governing operations of digital asset service providers (DASPs), namely France’s PACTE law, one of the first crypto legislative packages passed in Europe.
The world’s largest cryptocurrency exchange by trading volume has been already on the hunt for new headquarters in France. For this purpose, they financed a 100 million euro initiative together with a local nonprofit entity to support the blockchain and cryptocurrency sector in France.
Binance France has secured a digital asset service provider registration, which enables its Paris-based business to offer trading and custody services for cryptocurrencies on its platform.