Binance Seeks to Withdraw Cyprus' Unit Crypto Service Registration
The world's largest crypto exchange won registration as a crypto asset service provider (CASP) in Cyprus in October last year.
Jun 14, 2023 at 1:36 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/DC4GB23WGVHXLLXN3X3KVVU2UY.jpg)
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Cryptocurrency exchange Binance said it asked for its Cyprus unit's registration as a crypto service provider to be rescinded so it can focus on meeting the requirements of the European Union's Markets in Crypto Assets (MiCA) legislation.
The move comes just days after the world's largest crypto exchange was sued by the U.S. Securities and Exchange Commission (SEC) for, among other allegations, operating without registration and offering unregistered securities.
The Cyprus Securities and Exchange Commission website says the exchange is "under examination for application for deregistration," without giving a reason.
"We are working hard to prepare our business to be fully compliant with MiCA when it is implemented in the next 18 months," a Binance spokesperson said in an email to CoinDesk. "To that end, we have made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU."
Binance won registration as a crypto asset service provider (CASP) in October last year, permitting it to offer spot, custody, staking and card services in Cyprus.
UPDATE (June 14, 14:20 UTC): Adds comment from spokesperson starting in first paragraph, U.S. SEC lawsuit in second.
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Jamie Crawley is a CoinDesk news reporter based in London.