Germany's Federal Financial Supervisory Authority does not plan to grant Binance a license to provide crypto custody services, Finance Forward has reported citing sources.
It is reportedly unknown whether the refusal has already been formalized.
Binance has said:
"We continue to work to comply with BaFin‘s requirements. As expected, this is a detailed and ongoing process. We are confident that we have the right team and measures in place to continue our discussions with regulators in Germany."
The regulator's refusal to license the crypto exchange means a ban on advertising services, which could affect long-term growth.
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Binance’s app operates in the country and is one of the largest in terms of number of users with around 2 million.
Binance has withdrawn license applications in the UK, Austria, Cyprus, and has left the Netherlands market. The Belgian Financial Services and Markets Authority, meanwhile, has ordered the exchange to cease providing services immediately.