The Cyprus branch of the global cryptocurrency exchange, Binance, has submitted an application to withdraw its registration as a crypto asset service provider, according to the country’s securities regulator.
According to Reuters, the regulator disclosed this information but did not provide any reasons for the application.
Binance, a leading player in the world of cryptocurrencies, has a presence in many countries, including Cyprus. It offers a platform for trading a variety of digital currencies like bitcoin (BTC), ethereum (ETH), and many others.
However, the recent move to deregister its Cyprus unit as a crypto service provider has raised eyebrows in the crypto community.
The Cyprus Securities and Exchange Commission (CySEC) is the regulatory body that oversees the operations of financial service providers in the country.
It maintains a register of crypto asset service providers, and binance’s Cyprus unit was one of the entities on this list. The recent application by Binance’s Cyprus unit to be removed from this register was reflected on the CySEC website.
The reasons behind this move by Binance remain unclear as no specific details were provided in the application. This has led to speculation and uncertainty within the crypto community, as Binance is a significant player in the global cryptocurrency market.
The impact of this deregistration on Binance’s operations and its customers in Cyprus is yet to be seen.
Binance’s decision to deregister its Cyprus unit comes at a time when the global regulatory environment for cryptocurrencies is becoming increasingly stringent.
Many countries are tightening their regulations around crypto asset service providers to prevent illicit activities like money laundering and fraud. Whether this changing regulatory landscape has influenced Binance’s decision is not known.