Binance under pressure: crypto exchange facing closure in Great Britain and impending closure in Germany

Binance under pressure: crypto exchange facing closure in Great Britain and impending closure in Germany

Binance is under pressure worldwide as regulators target CEO Changpeng Zhao and the crypto exchange. In Europe, too, the authorities are taking an increasingly tough stance. In Great Britain in particular, Binance is on the verge of collapse.

Binance Markets Limited (BML) intends to cease retail trading in the United Kingdom, according to a person familiar with the matter. This move is expected to take place in the next two weeks, which will mean that UK customers will no longer be able to make deposits on the crypto exchange.

The company withdrew its application for a license from the British regulator FCA at the end of May. This means that no Binance Group entity has an authorization, registration or license to provide regulated services in the UK, the FCA said.

A spokesperson for Binance Europe stated that the withdrawn application has no impact on its parent platform Binance.com. The crypto exchange only serves those customers in the United Kingdom who actively seek the company's services.

The situation for Binance is also worsening in other European countries. The company recently withdrew from the Netherlands and Cyprus. In Austria, a license application was withdrawn and in France authorities are even investigating money laundering.

In Germany, the status of the crypto custody license has not yet been finally clarified. BaFin is said to have rejected the application. Binance Deutschland did not want to provide any further details, but is still working to meet BaFin's requirements.

The developments also affect the personnel situation at Binance. The company has reportedly laid off between 1,000 and 3,000 employees worldwide, although these figures are disputed by Binance. Several executives had previously left the company.

An insider claims that CEO “CZ” was the reason for these departures. He is said to have been beside himself due to the investigations by the US authorities. Allegedly, the employees were supposed to negotiate an “indulgence deal” with regulators, in which Binance wanted to pay off past mistakes with a hefty fine. When that failed, CEO CZ is said to have persuaded General Counsel Hon Ng to leave.

Binance is already in the focus of law enforcement authorities, particularly in the USA. Industry observers strongly expect that the US Department of Justice will also file charges.

It remains to be seen how the situation will develop for Binance. The crypto exchange has not yet given up its hopes of remaining in Germany and would like to meet BaFin's requirements. However, when it comes to the UK, it is clear that trading for UK customers will soon cease.