In a recent development, Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), has refused to grant a custody license to Binance, one of the world’s largest cryptocurrency exchanges. This decision has been met with surprise and disappointment from the crypto community, as Binance had been hoping to become the first major exchange to receive a license from BaFin.

The refusal of the license comes after months of negotiations between Binance and BaFin. The regulator had reportedly been asking for a number of changes to Binance’s operations, including the implementation of more stringent anti-money laundering (AML) and know-your-customer (KYC) procedures. Binance had been attempting to comply with these requests, but BaFin ultimately decided that the exchange did not meet their standards for a custody license.

The refusal of the license is a major setback for Binance, as it means that the exchange will not be able to offer its services to customers in Germany. This is particularly disappointing for German customers, who had been hoping that Binance would be able to provide them with access to the crypto markets.

The decision by BaFin is also a blow to the wider crypto industry, as it shows that regulators are still wary of the sector. This could lead to other regulators taking a similarly cautious approach when considering applications for licenses from other crypto exchanges.

Overall, the refusal of the license by BaFin is a major setback for Binance and the wider crypto industry. It shows that regulators are still wary of the sector and could lead to other regulators taking a similarly cautious approach when considering applications for licenses from other crypto exchanges. It remains to be seen how this decision will impact the future of Binance and the crypto industry as a whole.