According to the latest news, Binance has withdrawn its license application in Austria and stated that they cannot share the details of their discussions with the Austrian Financial Market Authority. Additionally, in light of this development, Binance had also taken steps to exit the Netherlands, Cyprus, and the United Kingdom.
Regulatory Pressure Blamed for the Withdrawal
According to sources reported by FinanceFWD, Binance withdrew its Austria application some time ago due to pressures from Austrian regulators. It was announced last year that Binance had established a company called Binance Austria GmbH with the aim of obtaining a license for one of its subsidiaries.
We continue to witness Binance’s tendency to withdraw from European markets due to pressures from regulatory authorities. The company had previously announced its withdrawal from the Netherlands due to a lack of legal approval. It had also applied to deregister in Cyprus and canceled its registration with the Financial Conduct Authority in the United Kingdom.
Legal Proceedings Continue
Recently, Binance had received an order from Belgium’s financial regulator to cease all services in the country. Furthermore, the ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance remains in progress. Both the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission have sued Binance and its CEO, Changpeng Zhao, alleging violations of federal laws and the absence of registration in the United States.
Lastly, Binance’s withdrawal of its license application in Austria and its withdrawal from European markets indicate that the exchange is facing regulatory pressures and taking steps to comply with regulations.