• Binance, the world’s largest crypto exchange platform by trading volume, is reportedly preparing to leave Cyprus and focus on other European markets.
• The move is in anticipation of new EU regulations, known as Markets in Crypto Assets (MiCA), which will come into effect starting January 2025.
• Last week, Binance and its CEO Changpeng Zhao were both sued by the U.S. Securities and Exchange Commission (SEC) for allegedly violating securities laws.
Binance Gears Up To Leave Cyprus
The world’s largest crypto exchange platform by trading volume is reportedly preparing to leave the country of Cyprus to focus on other European markets. According to a new report by Bloomberg, Binance is making moves to deregister its Cyprus arm, which was approved by the nation’s government in late 2022.
Focusing On Other Markets
A spokesperson for the firm told Bloomberg that it had “made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU, especially our larger registered markets where we already have a mature footprint.”
New EU Regulations Coming Into Effect
Binance’s withdrawal means that it can no longer solicit its services to customers in Cyprus or provide services in or from the country until at least new EU regulations take effect, according to the report. The new guidelines, known as Markets in Crypto Assets (MiCA) regulations, will come into effect starting January 2025 and would permit businesses to forward their existing registrations from other EU locations. Within the EU, Binance also has branches in France, Italy, and Spain. MiCA was proposed in 2020 and passed in 2022 as the first set of comprehensive regulations for the digital asset industry.
SEC Lawsuit Filed Against Binance And CEO
Last week, Binance and its chief executive Changpeng Zhao were both sued by the U.S. Securities and Exchange Commission (SEC) for allegedly violating securities laws.
Conclusion
It remains unclear how this lawsuit may affect Binance’s plans moving forward but investors should remain aware that changes are occurring rapidly within this space as regulators attempt to gain better control over digital assets globally