Binance applies to deregister its local entity in Cyprus

Quick Take

Crypto exchange Binance has applied to deregister in Cyprus after receiving a license in October 2022.

Crypto exchange Binance applied to deregister in Cyprus.

"Binance Cyprus Limited [is] under examination for application for deregistration," reads the website of the Cyprus Securities and Exchange Commission. Binance Cyprus received registration from the regulator in October 2022.

"We are working hard to prepare our business to be fully compliant with MiCA when it is implemented in the next 18 months. To that end, we have made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU, especially our larger registered markets where we already have a mature footprint, including France, Italy and Spain," a Binance spokesperson told The Block.

"Binance will continue to comply with applicable laws of the European Union," they added.

Binance submitted the deregistration application before it was sued by the United States Securities and Exchange Commission last week, the spokesperson said, declining to comment on specifically when. The SEC sued Binance and Binance.US for allegedly violating securities laws.

Binance Cyprus

Binance Cyprus had been granted Class 3 registration as a Crypto Asset Services Provider (CASP) by the Cyprus SEC. The registration allowed Binance to offer services, including spot, custodian, staking and card services, in compliance with the requirements of the Cyprus SEC's anti-money laundering and counter-terrorist financing (AML/CTF) rules.

At the time, Binance said it was "another milestone" for the company in its regulatory efforts and followed similar registrations for its local entities in France, Italy and Spain.

"Registration in Cyprus is an important step in our European growth and is another sign of our commitment to the region," Martin Bruncko, Binance's then-executive vice president of Europe, said at the time. "We look forward to building out our local team in Cyprus and helping to develop the local crypto ecosystem." Bruncko left Binance last month, according to his LinkedIn profile.

(Updates with comment from Binance spokesperson)