- The market continues to consolidate and crypto exchanges need to restructure.
- Crypto.com is able to gain a foothold in the Netherlands.
- At the same time, Binance withdraws its application to BaFin.
The market is increasingly consolidating. After an initial wave of insolvencies and closures, access to the individual markets is now shifting. In Germany, Nuri was affected and had to be wound up in October 2022. Change is also on the horizon in the Netherlands, as LiteBit voluntarily struck sail, allowing Bitvavo to take over its clientele and making its overall position in Europe more dominant.
Crypto.com is also interested in the Netherlands, announcing yesterday that it has acquired a license after successfully registering with DNB. This underscores the exchange’s commitment to Europe, as it is also licensed in Spain, France, Italy, the UK, Greece and Cyprus.
So while Crypto.com has headwinds, it’s getting harder for other companies to gain a foothold in Europe. This includes the market leader.
Binance withdraws application to BaFin
As early as June, it became clear that Binance would not receive permission from BaFin in Germany. Now the company has unceremoniously withdrawn its application and thus probably avoided rejection.
However, this step is by no means the final end, because the regulatory landscape within the EU will change from mid-2024 due to the gradual introduction of MiCA. Binance, just like many of its competitors, will use the introduction of MiCA as an opportunity to qualify directly on the entire European market.
Whether this plan will ultimately be crowned with success is considered questionable. In the USA, the company is facing a number of lawsuits. Recently, Binance defended itself against the CFTC and demanded the termination of the proceedings. However, the reasoning that the US authority lacks jurisdiction does not sound particularly convincing. BitMEX and Bitfinex also had to learn in the past that US authorities always become responsible when serving US consumers. This bad position could ultimately ensure that one does not receive any approvals in Europe even with MiCA.
France is already under investigation for money laundering and the Netherlands and Belgium banned Binance from doing business. Thus, the situation for the exchange remains tense.
Picture Copyright: plasticperson
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