In a recent development, Binance has applied to deregister and pull out of from Cyprus market ahead of MiCA implementation. The world’s largest crypto exchange by trade volume made this move to divert its attention to a larger market in the European Union.
In a June 14 recent press statement, Binance confirmed that this is in a bid to focus on its larger market in France, Italy, and Spain. According to the Cyprus SEC website, Binance Cyprus Limited’s application for deregistration is currently under examination.
Binance Cyprus Ltd, a subsidiary of the global exchange registered and was approved by the Securities and Exchange Commission (CySEC) in October 2022, however, that status has changed in a move to exit the local market.
In a comment, a spokesperson for the crypto exchange said that one of the reasons for the decision is to be fully compliant with MiCA (markets in crypto-assets) when it takes effect in the next 18 months.
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“We have made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU, especially our larger registered markets where we already have a mature footprint, including France, Italy, and Spain. Binance will continue to comply with applicable laws of the European Union,” the statement reads.
Related Reading: District Judge Orders SEC and Binance.US to Negotiate Over Total Asset Freeze
Binance and its regulatory struggles
Binance application to deregister from Cyprus comes amid several regulatory struggles. The crypto firm has been trending recently for its legal tussle with regulatory agencies, particularly the United States Securities and Exchange Commission. On June 5, the company was sued by the Commission for allegedly violating federal securities laws.
According to the agency, Binance offered unregistered securities to customers and also operated an unregistered exchange. The exchange native token BNB and affiliated stablecoin BUSD were classified as securities in the lawsuit.
In addition, the watchdog filed a motion seeking a temporary restraining order to freeze Binance.US assets and also issued a court summon to its CEO Changpeng Zhao. However, in a report earlier today, a United States District Judge ordered Binance and the SEC to work towards a compromise to avoid a total asset freeze.
As if that is not enough, the Nigerian SEC, in a June 10 statement declared that Binance is unregistered in the country and that its operation is illegal. The global crypto community is paying close attention as these developments unfold and waiting to see the final outcome.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.