The crypto exchange giant aims to become a licensed digital asset service provider in the biggest economy in Europe
The move comes just weeks after the exchange acquired regulatory approval from France regulator in a quest to bite into the European market
Expansion plans by the world’s largest crypto exchange in terms of volume, Binance, have shifted focus on winning regulatory approval in Germany. Co-founder and CEO Changpeng Zhao announced that the exchange held back late last year after pressure from financial authorities across several jurisdictions, Germany included, forced them to stop operations.
Germany could join Dubai, Abu Dhabi and Bahrain in the list of jurisdictions where Binance has clearance to operate in. Binance CEO recently revealed at a conference that the exchange is recruiting compliance personnel within the country.
German license approval could be the perfect gateway into other jurisdictions
The European Union has lately become more conservative with crypto license approval, and a nod by Germany could be a game-changer for the exchange in terms of expansion. Not only will it prove to other financial authorities worldwide that crypto can be regulated, but also bring about the overall advancement of the blockchain ecosystem.
Binance’s foray into the Middle East and France highlights the exchange’s commitment to compliance within the jurisdictions that they seek to acquire permits. This has taken several forms including practices like joining a cyber-forensics and training alliances early this year to mitigate cybercrime threats, creating a tax reporting tool, and offering law enforcement support systems to help them acquire any information they deem helpful.
Tax guide by the German Federal Finance Ministry sends a positive signal
With Binance having put in a request and laid the necessary framework to obtain approval, the German tax authorities issued administrative instructions to individuals and businesses to guide them in filing income tax for crypto and other tokens. This, according to their Ministry’s site, indicate that positive steps are being taken in light of blockchain advancement in the country.
As a Digital Assets Service Provider, Binance aims to soon scale up operations in Germany if license approval is obtained soon. Considering Germany is the biggest economy in Europe, the spotlight shines bright on them after France recently disapproved of the common misconception of cryptocurrencies by granting a license.
The European Union may soon change its perception of the crypto space should Germany grant Binance the coveted license.