Binance Courts German Regulators as Push to Europe Continues
Binance is seeking to woo German financial authorities in a fresh bid to establish a presence in the country, following a rebuke from the regulator last year for offering US stock tracking tokens without an investor prospectus.
Binance, following French government approval earlier this month, is seeking to get back into the good books of German financial regulator, BaFin. Binance CEO Changpeng Zhao speaking at the Fintech Finance Forward conference in Germany on Wednesday, mentioned“Our team is talking to regulators here and across Europe. I haven’t spoken to them directly myself, but based on my secondary feedback from our team, things are going well. He said Binance hopes obtain a license in Germany under BaFin rules, however, he was unwilling to disclose details of confidential correspondence between Binance and the regulator outside of this.
Continued G-7 push
Binance continues its breakthrough in G-7 member countries, following approval from a market regulator in Paris to operate as a digital asset service provider. “It’s a huge step,” Zhao said. mentioned at the time. Binance previously obtained licenses to operate in Bahrain, Dubai, and Abu Dhabi. Competitors FTX and Kraken have been given the green light in Abu Dhabi and Dubai. Zhao announced a $105 million investment in the blockchain industry in France, promising to employ 250 people to develop infrastructure.
BaFin issued a warning to Binance
Last year, BaFin issued a warning to Binance after the crypto platform began offering tokens linked to shares of Tesla Inc., MicroStrategy Inc., Microsoft Corp. and Apple Inc. without “issuing an investor prospectus”, which is a disclosure containing the information required by law, written in an easy to understand manner. Binance intended to offer these tokens to customers outside of the United States, China, and Turkey to “exchange stocks via cryptocurrencies,” using tokens that “represent a share in a joint-stock company”, without certain advantages such as the right to vote. CM-Equity, an investment group that handled the tokens, mentioned that an investment prospectus was not necessary because stock tokens could not be transferred to another person like shares could.
BaFin then warned Binance that it faced fines of up to five million euros, or 3% of its annual turnover for the previous year.
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