Binance, the world’s largest crypto exchange by volume, said on Thursday that it has received regulatory authority to operate digital asset services in France, making it the first European country to do so. The country’s market and banking regulators gave the exchange the go-ahead, months after the exchange had encountered many regulatory hurdles on the continent.
In a statement, Binance founder and CEO Changpeng Zhao, widely known as CZ, said, “Effective regulation is necessary for the mainstream acceptance of cryptocurrency.” Binance must work on “anti-money laundering compliance,” according to France’s financial sector regulator, if it wants regulatory clearance to open a regional headquarters in Paris. In August, the United Kingdom issued a notification stating that the firm lacked formal permission to operate there. A similar warning was issued by Germany.
Binance has been working hard to demonstrate to European regulators its commitment to practicing compliance and promoting the blockchain ecosystem in the area. Binance said in November that it will invest 100 million euros to “help the growth of the French and European blockchain and cryptocurrency ecosystems” as well as establish a research and development center in France. Binance, which was created in China, has mainly abandoned the country as a result of Beijing’s broad crypto prohibition.
Many Chinese-founded cryptocurrency companies have relocated their headquarters to Singapore, which is swiftly becoming a regional powerhouse for blockchain entrepreneurs. Binance is understood to be looking for a new home, having announced in December that it will withdraw its licensing application and cease operations in Singapore.
Reuters, HONG KONG, Dec 13 – Binance, one of the world’s largest cryptocurrency exchanges, said on Monday that it will withdraw its local license application and stop its digital payment token business in the crypto-friendly city-state. The corporation did not specify a justification for its decision other than “strategic, commercial, and developmental” factors, and stated that it will refocus the local unit’s efforts on becoming a blockchain innovation centre.
This year, governments and financial regulators across the world have increased their scrutiny of the cryptocurrency business, posing a challenge to exchanges that have prospered in a mostly uncontrolled environment. Due to a relatively clear legislative and operational environment, Singapore is a favored site for cryptocurrency companies, and it is one of the world’s forerunners in building a formal licensing structure.