In its efforts to grow its business in Europe, Binance is running into a number of obstacles.
The cryptocurrency behemoth was shut down by the Netherlands and Belgium, and Germany is refusing to renew its operating permit.
Furthermore, as part of a money laundering probe, French authorities are searching Binance’s office.
As a result, according to Kaiko, Binance’s share of euro-denominated cryptocurrency trade has fallen from over 30% in January to just 15%.
In response to FTX’s demise, European regulators have taken a stricter stance towards cryptocurrency exchanges.
By potentially limiting Binance’s presence in Europe due to this legislative change, the exchange may be forced to rely more largely on markets in Latin America, Asia, and Africa.
Although France, Germany, and the Netherlands continue to be in the top 25, according to SimilarWeb, nations like Vietnam, Turkey, India, and Argentina already produce a sizable amount of user traffic on the platform.
A lawsuit by the Securities and Exchange Commission and a criminal investigation by the Department of Justice are two ongoing issues that Binance is dealing with in the US.
Binance, however, concentrates on adhering to the specifications of the upcoming European Union regulation, known as MiCA, which would regulate digital-asset businesses across its 27 member states beginning next year.
The cryptocurrency exchange, run by Changpeng Zhao, has grown quickly since its launch in 2017, taking advantage of regulators’ global reluctance to act.
Binance promised to acquire licenses and embrace regulation in response to growing criticism.
Following a thorough registration procedure in France, the exchange chose Paris as the location of its first regional headquarters in 2022.
French prosecutors are looking into unsuitable money laundering controls and the illegal provision of services prior to registration, but its previous behavior is still haunting it today.
Binance has seen more setbacks, including being told to stop operations in Belgium by the Financial Services and Market Authority and failing to obtain registration in the Dutch market.
It has also been difficult to obtain approval to do business in Germany, with the market regulator BaFin only granting crypto-custody licenses to seven businesses, including the American exchange Coinbase.
Some financial service companies, like Paysafe, have pulled away from Binance as a result of the escalating regulatory scrutiny.
Following a decision to end British pound services, Paysafe recently announced the end of its euro transfer services for the exchange. In order to restore the service, Binance plans to find a new supplier.
