Binance, the world’s largest crypto exchange by trading volume, has removed itself from the Register of Authorized Crypto Asset Service Providers (CASPs) in Cyprus to focus its efforts on compliance with the EU Markets in Crypto Assets Regulation (MiCA). is demanding. ,
Binance’s move to delist its Cypriot entity was first revealed on the website of the country’s financial regulator, the Cyprus Securities and Exchange Commission (CySEC), which now says that Binance is “under investigation for filing a deregistration request”. Is.”
According to the CySEC website, Binance was first added to the registry in October of 2022 and authorized to provide exchange services from fiat to crypto and crypto to crypto.
Binance indicated in media releases that the reason it was delisted from the CASP registry in Cyprus is so that it can focus on fully complying with the new MiCA regulatory framework in the larger EU country.
A similar reason was also provided in a Bloomberg article on Wednesday, which quoted a Binance spokesperson as saying that key European markets will be prioritized going forward.
“[We] have decided to scale back efforts in Cyprus in order to focus our efforts on the less regulated entities in the EU, in particular our large registered market where we already have a mature footprint,” the spokesperson was quoted as saying.
In addition to the entity in Cyprus, Binance also has entities registered in France, Italy and Spain, all countries covered by the MiCA regulation.
Although the MiCA has been signed into law, the new regulatory framework is not expected to come into force officially within the European Union until January 2025.
Differing US and European regulatory approaches
In the US, Binance and its CEO Changpeng Zhao have been sued by the Securities and Exchange Commission (SEC) for offering unregistered securities and operating an unlicensed securities exchange.
Among other things, the SEC said Binance showed “flagrant disregard for federal securities laws.”
Possibly due to the crackdown on the cryptocurrency industry in the United States, Zhao has in the past praised Europe’s approach to regulating digital currencies, describing it as a “practical solution to the challenges we collectively face.” We do.
“There are now clear rules of the game for cryptocurrency exchanges to operate in the EU. We stand ready to make adjustments to our business to remain in full compliance mode over the next 12-18 months,” reiterated CZ when The European Parliament passed MICA.