The widely known cryptocurrency exchange Binance appears to be taking steps to withdraw from Cyprus. The Cyprus Securities and Exchange Commission (CySEC) has flagged Binance Cyprus Limited as “under examination for application for deregistration” on their official website. Just a few months back, in October, Binance had been given the Class 3 registration as a Crypto Asset Services Provider (CASP) in Cyprus, which at the time was seen as a notable regulatory accomplishment in Europe.
Surprisingly, according to a Reuters report citing an unnamed source from the regulator, Binance has not launched its services in Cyprus yet. A Binance spokesperson shared that the move to pull back from Cyprus is part of their ongoing efforts to fully adhere with upcoming MiCA regulations, which are expected to be enforced within the next 18 months. They added that the focus would shift towards larger registered markets in the European Union (EU).
It’s worth mentioning that the crypto industry is preparing for the implementation of the EU Markets in Crypto-Assets (MiCA) legislation next year. As Cyprus is an EU member, MiCA rules will enable Binance to easily “passport” its registration among other European regulators in countries subject to the new legislation. However, the withdrawal from Cyprus raises concerns regarding Binance’s commitment to the regulatory environment and its motivation for entering the island nation in the first place.
In addition to Binance, the CySEC website lists nine other registered CASPs, including eToro and a Revolut entity. Other big names like Crypto.com and Gemini are reportedly in the process of receiving registration in Cyprus.
One has to question the potential ramifications of Binance’s decision to deregister in Cyprus on its ongoing regulatory endeavors in Europe. Is the exchange facing potential regulatory headwinds or is this simply a strategic move to concentrate on other more lucrative regions within the EU? Only time will tell how this decision will unfold in the long run for Binance, but as of now, it undoubtedly raises a few eyebrows in the crypto community.
Source: Cointelegraph
