Regulators Cracking Down on Crypto Industry: Binance Requests to Exit Cyprus

The Cyprus Securities and Exchange Commission (CSEC) received Binance’s subsidiary deregistration petition as a crypto services provider, as per CoinDesk’s report. If approved, the company won’t be able to provide its services in the country. Binance was authorized to operate in Cyprus under 427114 in 2022 and could provide crypto trading, investment advice, custody, and other financial services. The deregistration petition for the company is under the CSEC’s examination at the moment.

BNB’s price sees some recovery on the daily chart. Source: BNBUSDT Tradingview

Binance Under Regulatory Pressure

Binance had celebrated its Class 3 registration as a CASP in Cyprus less than a year ago. The company announced access to card services, staking, spot trading, and other products for customers in Cyprus, complying with the country’s anti-money laundering laws. CySEC is the AML/CFT supervisory authority for crypto-asset operations from or within Cyprus. Binance stated, “this is another milestone in Binance’s regulatory efforts in Europe and follows similar registrations for Binance’s local entities in France, Italy, and Spain.”

Regulators Cracking Down On Crypto Industry: Binance Requests To Exit Cyprus

Binance’s decision to leave the country has not been explained by the management yet, leaving room for speculations. The ever-increasing regulatory pressure in the US has been an issue for the company, with allegations of offering unregistered securities and operating without a license in the US by the US Securities and Exchange Commission(SCE). Binance’s CEO, Changpeng “CZ” Zhao, had praised the company’s thorough AML and CTF compliance policies in the industry at the time of receiving the Cyprus license. Although it is unclear whether anything related to these aspects has changed for the company, it has been suggested that Binance is choosing to shift its focus towards more significant regulatory issues.

Image source: Unsplash, Tradingview

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