- Binance applied to deregister in Cyprus even before the recent SEC lawsuits
- The exchange received its service provider license last October
Cryptocurrency exchange Binance announced it has applied to deregister its Cyprus unit as a crypto service provider. The company explained this decision as it seeks to focus on complying with European Union Markets in Cryptocurrency Assets (MiCA) legislation.
The Cypriot SEC said in a statement that Binance Cyprus Limited is under consideration to apply for deregistration. An exchange spokesperson also commented on the situation, he said:
“We are trying to make our business one that will be fully MiCA compliant when they are implemented over the next 18 months.. Therefore, we decided to reduce our activity in Cyprus and concentrate our efforts on a smaller number of regulated entities in the European Union. Particularly in our main markets where we already have a strong presence, such as France, Italy and Spain.”
Binance Cyprus has received a Class 3 classification as a Crypto Asset Service Provider (CASP) from the SEC of Cyprus. This registration allowed the exchange to provide a variety of services, including spot trading services, custodian services, staking, and other. And they all complied with the local anti-money laundering and counterterrorist financing (AML/CTF) regulator’s rules.
The company said in October that registering in the country was an important step in its European development.. They wanted to help develop a local crypto-ecosystem. However, as we can see now, after about 9 months, the company is demanding the cancellation of the license of the crypto-service provider. It’s worth noting that the exchange filed the application even before the SEC sued it last week.
It’s worth noting that the exchange filed the application even before the SEC sued it last week.