Binance Registration as a Legal Institution
Either acknowledged or authorized: Under the spotlight, Binance wins further approval in Europe.
A series of regulatory challenges, accusations of money laundering, and a constant battle against allegations of 'being in trouble' have plagued Binance, the largest crypto exchange in the world. But in spite of all this, the company is expanding its footprint in Europe.
Following the Terra Luna crash, the UK Financial Conduct Authority (FCA) issued a circular in June 2021 declaring Binance unregulated, prohibiting the company from conducting any business in the country. The crypto exchange was forced to temporarily halt payments from the European Union’s Single Euro Payments Area (SEPA) and the UK's Faster Payments network in July 2021.
As a result of an investigation by Reuters in December 2022, Binance came under further scrutiny for handling transactions involving hacks, fraud, and illegal drug sales exceeding 2.35 billion USD (2.22 billion EUR). In response to Reuters' allegations, Binance indicated that its platform is well protected against money laundering and that cryptocurrencies do not serve as a safe haven for criminals. According to Tigran Gambaryan, Binance's global head of intelligence and investigations, the security and compliance team has grown by more than 500% in just one year. “Even though investing in the people, technology, and efforts to fight cybercrime doesn't immediately result in profits, we see it as our moral obligation,” he added.
In spite of the cold reception that Binance has received through the years, the license to operate in France, which was obtained in May 2022, marked a turning point for the company. It was Binance's first DASP (Digital Account and Support Platform) in Europe.
In addition to expanding its footprint in Europe, Binance has received registration to operate in Sweden as of 11 January 2023.
Following the granting of operating licenses to Binance by France, Italy, Spain, Cyprus, Lithuania, and Poland within the last two years, Sweden becomes the seventh EU member state to do so.
Binance now has 15 operating licenses and registrations around the world as a result of today's announcement.
The authorization will allow local consumers to access the company's products and services, including the ability to purchase cryptocurrencies using the Euro, make withdrawals in fiat, and trade and stake cryptocurrencies.
The Head of Europe and MENA at Binance, Richard Teng, said the latest registration confirms the company’s commitment to cooperate with regulators to “uphold global standards.”
“We are deeply grateful for the support from the Swedish Financial Supervisory Authority throughout the application process, and for the approval. Sweden is now amongst the growing list of global jurisdictions that have granted regulatory approval to Binance,” the executive added.
Cryptocurrency Regulation In Europe is fragmented, contributing to the contrast in authorizations
According to Caroline Malcolm, head of international public policy and research at blockchain analysis company Chainalysis, there are very different crypto regulatory regimes across Europe, but these regulations are about to be significantly harmonized across the EU.
An EU regulation known as the Markets in Crypto-Assets (MICA) was proposed in 2020, which provides a legal framework for crypto assets that are not already covered by existing financial services legislation. By filling the regulatory vacuum, the European crypto-asset market is expected to become the global center of gravity, and a world leader. There are provisions in the MICA to protect consumers and investors, address risks related to financial stability and monetary policy, and combat market manipulation, money laundering, terrorist financing, and criminal activity. MICA was adopted by the European Parliament on 14 March 2020.
Binance states that it is committed to working closely and collaboratively with regulators across the globe.
About Binance
Binance came to prominence during the crypto boom of 2017, offering a variety of digital assets and innovations, including its own blockchain.
As a result of Zhao's ambitious growth-at-all-cost strategy, which included hopscotching the globe in search of favorable regulatory environments, Binance became the biggest crypto exchange in the world by volume.
A Binance-created token known as BNB was released in 2020 and is currently ranked fifth in terms of value, with a market cap of around $43 billion.
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Marcus Jr.
A series of regulatory challenges, accusations of money laundering, and a constant battle against allegations of 'being in trouble' have plagued Binance, the largest crypto exchange in the world. But in spite of all this, the company is expanding its footprint in Europe.
Following the Terra Luna crash, the UK Financial Conduct Authority (FCA) issued a circular in June 2021 declaring Binance unregulated, prohibiting the company from conducting any business in the country. The crypto exchange was forced to temporarily halt payments from the European Union’s Single Euro Payments Area (SEPA) and the UK's Faster Payments network in July 2021.
As a result of an investigation by Reuters in December 2022, Binance came under further scrutiny for handling transactions involving hacks, fraud, and illegal drug sales exceeding 2.35 billion USD (2.22 billion EUR). In response to Reuters' allegations, Binance indicated that its platform is well protected against money laundering and that cryptocurrencies do not serve as a safe haven for criminals. According to Tigran Gambaryan, Binance's global head of intelligence and investigations, the security and compliance team has grown by more than 500% in just one year. “Even though investing in the people, technology, and efforts to fight cybercrime doesn't immediately result in profits, we see it as our moral obligation,” he added.
In spite of the cold reception that Binance has received through the years, the license to operate in France, which was obtained in May 2022, marked a turning point for the company. It was Binance's first DASP (Digital Account and Support Platform) in Europe.
In addition to expanding its footprint in Europe, Binance has received registration to operate in Sweden as of 11 January 2023.
Following the granting of operating licenses to Binance by France, Italy, Spain, Cyprus, Lithuania, and Poland within the last two years, Sweden becomes the seventh EU member state to do so.
Binance now has 15 operating licenses and registrations around the world as a result of today's announcement.
The authorization will allow local consumers to access the company's products and services, including the ability to purchase cryptocurrencies using the Euro, make withdrawals in fiat, and trade and stake cryptocurrencies.
The Head of Europe and MENA at Binance, Richard Teng, said the latest registration confirms the company’s commitment to cooperate with regulators to “uphold global standards.”
“We are deeply grateful for the support from the Swedish Financial Supervisory Authority throughout the application process, and for the approval. Sweden is now amongst the growing list of global jurisdictions that have granted regulatory approval to Binance,” the executive added.
Cryptocurrency Regulation In Europe is fragmented, contributing to the contrast in authorizations
According to Caroline Malcolm, head of international public policy and research at blockchain analysis company Chainalysis, there are very different crypto regulatory regimes across Europe, but these regulations are about to be significantly harmonized across the EU.
An EU regulation known as the Markets in Crypto-Assets (MICA) was proposed in 2020, which provides a legal framework for crypto assets that are not already covered by existing financial services legislation. By filling the regulatory vacuum, the European crypto-asset market is expected to become the global center of gravity, and a world leader. There are provisions in the MICA to protect consumers and investors, address risks related to financial stability and monetary policy, and combat market manipulation, money laundering, terrorist financing, and criminal activity. MICA was adopted by the European Parliament on 14 March 2020.
Binance states that it is committed to working closely and collaboratively with regulators across the globe.
About Binance
Binance came to prominence during the crypto boom of 2017, offering a variety of digital assets and innovations, including its own blockchain.
As a result of Zhao's ambitious growth-at-all-cost strategy, which included hopscotching the globe in search of favorable regulatory environments, Binance became the biggest crypto exchange in the world by volume.
A Binance-created token known as BNB was released in 2020 and is currently ranked fifth in terms of value, with a market cap of around $43 billion.
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