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Binance, the largest cryptocurrency exchange globally, has decided to backtrack on its initial plans to expand into Cyprus, despite being officially licensed by the Cyprus Securities and Exchange Commission in October 2022.
The company has recently applied to be removed from the relevant register of the Supervisory Authority in Cyprus, indicating a significant shift in its strategy for establishing a strong presence on the island.
Binance CEO Changpeng Zhao had previously expressed the intention to strengthen the company's operations in Cyprus after obtaining approval from the supervisory authority. In an interview with Economy Today in November, he mentioned that they already had offices and staff in Cyprus working for Binance and were planning to increase their presence on the island in terms of visibility and hiring more people.
However, according to a Reuters report, Binance never actually commenced operations in Cyprus following the license approval in October 2022. The exchange has now decided to withdraw from Cyprus and focus on other entities within the European Union (EU). This decision is driven by the impending implementation of EU regulations on cryptocurrencies, known as MiCA. Binance aims to be fully compliant with MiCA within the next 18 months and will concentrate on a smaller number of regulated entities within the EU where it already has a larger presence, such as France, Italy, and Spain.
A spokesperson for Binance informed Reuters that the company is withdrawing from Cyprus to prioritize its other businesses and strengthen its overall presence in the EU in anticipation of MiCA's implementation. They emphasized Binance's commitment to complying with applicable EU laws.
Importantly, Binance customers in Cyprus will not be impacted by these changes. They can continue using the platform as before, as the withdrawal from Cyprus does not affect their ability to engage in cryptocurrency activities on Binance.
By fLEXI tEAM