In the latest blow to Binance, the world’s largest cryptocurrency exchange by trading volume, its European expansion campaign faces increasing hurdles as the company struggles to obtain licenses in a number of countries.
Quick facts:
- The exchange has reportedly withdrawn its application for registration with the Austrian Financial Market Authority (FMA).
- Binance has experienced a significant turnover of executives in its European management team, further adding to its challenges in the region.
- Binance is already entangled in a lawsuit with the U.S. Securities and Exchange Commission (SEC).
Binance has reportedly withdrawn its application for registration with the Austrian Financial Market Authority (FMA). According to FinanceFWD, a German publication, the withdrawal occurred a while ago.
The reasons behind the withdrawal remain undisclosed, with neither the FMA nor Binance willing to comment publicly on the matter.
Binance’s European Woes
The setback in Austria is part of a series of recent challenges faced by the world’s leading crypto exchange in Europe. Over the past month, the exchange has either withdrawn from or had to withdraw from several countries, including the United Kingdom, Belgium, the Netherlands, and Cyprus.
These developments signal mounting pressure on Binance’s operations and regulatory compliance efforts across the continent.
Although Binance’s expansion in Austria marks a failure in its European expansion plans, it does not directly impact its users in the country.
If the license was granted, the exchange would have been able to conduct marketing and advertising activities in Austria. However, the withdrawal does not impact the services already provided to Austrian customers.
The exchange recently had to withdraw from the Netherlands, where it was operating without regulatory approval. In Belgium, the financial regulator demanded that Binance take immediate measures to return all crypto assets to Belgian customers or transfer them to a licensed service. Similar registration withdrawals have occurred in the UK and Cyprus, while ongoing investigations into money laundering are underway in France.
Internal Challenges?
Binance is also grappling with internal challenges in Europe, experiencing a significant turnover of key executives in recent months. FinanceFWD reported that several high-ranking officials responsible for the European expansion, including the Senior Director and MD Germany, Austria, and Switzerland, Michael Wild, have left the company.
Martin Bruncko, who held the position of Executive Vice President Europe, at Binance, has also reportedly left. Bruncko, who previously served as a senior adviser to Slovakia’s Finance Minister and as an ambassador for the European Innovation Council, is no longer affiliated with Binance.
Among the executives who have departed on leave in recent weeks and months are Mike Ringer, formerly the head of legal for Europe and the CIS; Lynn McConnell, who held the position of director of compliance for Europe, Daniel Trinder, the former vice president of government affairs and policy in the UK; and Doron Rozenberg, who previously served as the head of marketing for Germany, Austria, and Switzerland.
As reported by WeStarter, Binance has experienced a notable decrease in its market share, plummeting from 65.9% in January to 56.4% in May, and further declining to 55.9% in June 2023. These statistics indicate a significant setback for the exchange as it faces challenges maintaining its position in the fiercely competitive cryptocurrency trading industry.
