Binance, the world’s largest cryptocurrency exchange by trading volume, has requested to delist from the register of authorized crypto asset service providers (CASPs) in Cyprus. The move was made in order to comply with the European Union’s new Markets in Crypto-Assets (MiCA) regulation. The news was first reported on the website of the Cyprus Securities and Exchange Commission (CySEC), which stated that Binance is “under examination for application for deregistration.” Binance was authorized to offer exchange services from fiat to crypto and crypto to crypto in Cyprus and was added to the register in October 2022.
Binance’s Focus on MiCA Compliance
Binance has cited full compliance with the new MiCA regulatory framework in larger EU countries as the reason for delisting from Cyprus’ CASP register. The company has stated that it will prioritize larger European markets going forward. According to a Binance spokesperson, “[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.” Binance also has entities registered in France, Italy, and Spain, which are all covered by the MiCA rules. MiCA has been signed into law, but the new regulatory framework is not expected to take effect within the EU until January 2025.
Binance’s Legal Troubles in the US
In the US, Binance and its CEO Changpeng Zhao are facing a lawsuit from the Securities and Exchange Commission (SEC). The company has been accused of offering unregistered securities and operating an unlicensed securities exchange. The SEC has stated that Binance has shown a “blatant disregard of the federal securities laws.” Due to the crackdown on the crypto industry in the US, Zhao has praised Europe’s approach to crypto regulation, calling it “a pragmatic solution to the challenges we collectively face.” He further added that “There are now clear rules of the game for crypto exchanges to operate in the EU. We’re ready to make adjustments to our business over the next 12-18 months to be in a position of full compliance,” back when MiCA was passed by the European Parliament.
Binance has requested to delist from the register of authorized crypto asset service providers in Cyprus and focus its efforts on complying with the EU’s new Markets in Crypto-Assets regulation. The company has cited full compliance with the new regulatory framework in larger EU countries as the reason for delisting from Cyprus’ CASP register and will prioritize larger European markets going forward. Binance is also facing legal troubles in the US, where it has been accused of offering unregistered securities and operating an unlicensed securities exchange.