The world’s largest cryptocurrency exchange Binance has withdrawn its application to register with the German Federal Financial Supervisory Authority (BaFin).

In an emailed statement to Bloomberg, a spokesperson for Binance confirmed the news, writing: “Binance confirms that it has proactively withdrawn its BaFin application. The situation, both in the global market and regulation has changed significantly. Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.”

Reports began to circulate earlier this month in Germany that BaFin was considering denying Binance’s application, but the exchange at the time maintained that conversations were still ongoing. It remains to be seen whether Binance will return to Germany with a renewed application to register.

Whether in Germany or elsewhere, Binance will be required to comply with an upcoming European Union rule change which will require companies seeking to operate in the bloc to secure authorisation from at least one member state by January 2025.

Binance, whose chief executive Changpeng ‘CZ’ Zhao is facing a Commodity Futures Trading Commission lawsuit for allegedly breaking US derivatives rules, has also been facing increased pressure in Europe. The company moved to exit a number of European markets last month including Belgium, Cyprus and the Netherlands, while French prosecutors have launched an investigation into potential aggravated money laundering.

Binance also faces a European headache after its payment service provider Paysafe abandoned a partnership with the crypto exchange. This will see Binance no longer able to support deposits or withdrawals in euros, and comes after Paysafe had already stopped support for transactions in British pounds.

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