- The media has learned the reasons for BaFin’s rejection of Binance’s registration application.
- The regulator asked the exchange to withdraw its license because of Changpeng Zhao.
- The agency suggested that the company’s CEO would not pass a background check.
The German Federal Financial Supervisory Authority (BaFin) has asked the Binance exchange to withdraw its license application because of CEO Changpeng Zhao. The WSJ reports this, citing its sources.
According to the publication, a spokesman for the regulator expressed concern that the exchange’s CEO would not pass a “fit and proper person” review. The WSJ source cites the “Managing directors” clause of BaFin’s set of counterparty requirements:
“Members of the institution’s management must have the necessary professional qualifications, good reputation and must devote sufficient time to their functions.”
A BaFin spokesperson also notified Binance, according to the WSJ, that the exchange’s current organizational structure does not meet the requirements of current legislation.
In a comment for Cointelegraph, a spokesperson denied the allegation. However, neither Binance nor its CEO has issued an official response as of this writing.
Remember, the exchange had its license revoked in Germany in late July. The firm said it plans to resubmit the paperwork, but exactly when that will happen is not yet known.
Binance was previously rejected in the Netherlands, after which it was forced to exit the marketplace. The central bank said the exchange may try to get a license again, but after MiCA rules are implemented.
In June 2023, it was reported that some European regulators had joined the U.S. Securities and Exchange Commission in investigating the company’s activities.
With this as a backdrop, rumors of Binance’s top management fleeing the local unit surfaced. The company itself commented on the situation, calling the staff leak a routine personnel reshuffle.