Amid rising tensions from a US SEC lawsuit, Binance has abandoned its registration plans in Austria. According to a German media outlet, Finance Forward, Binance has withdrawn its application for registration with the Austrian Financial Market Authority (FMA).
A Binance spokesperson commented that the company couldn’t disclose details about the matter but is fulfilling its obligations. Last year, the exchange established Binance Austria GmbH with the intention of obtaining a license for the subsidiary, but with this new announcement, it appears that the plans have been terminated.
The company has been facing setbacks for some time now, as it has already scaled back its plans in the United Kingdom, Belgium, Cyprus, and the Netherlands. It should be noted that Binance’s withdrawal of its application in Austria does not impact its current business. The license would have only allowed Binance to engage in marketing, advertising, and other activities.
Despite the setback in Austria, Binance is committed to full compliance with the EU’s MiCA requirements, which would come into effect next year. Binance CEO Changpeng Zhao has previously praised the MiCA legislation as a “pragmatic solution” for regulatory clarity.
While Binance is facing lawsuits in the US, it remains optimistic about expanding its business in Europe. However, Finance Forward reported that Binance has lost over half a dozen executives in the EU and UK.
The list of executives includes Michael Wild, who was expected to build the business in Germany, Switzerland, and Austria, and Mike Ringer, Head of Legal for Europe & CIS.
Some notable executives such as Lynn McConnell, Director of Compliance Europe, Daniel Trinder, Vice President of Government Affairs & Policy in the UK, and Doron Rozenverg, Head of Marketing in Austria, Germany, and Switzerland, also left the company.
In contrast, the new managing director of Binance Germany, Jonas Jiinger, remains confident in the company’s plans. He stated that establishing a Binance branch in Germany is his top priority among other things.
Last week, Binance Labs, the venture capital and incubation arm of Binance, intensified its Web3 efforts and announced significant investments in five promising projects. Despite regulatory challenges, Binance is actively pursuing a rigorous process to drive growth and innovation.
Binance is currently under pressure from regulatory authorities in various countries, leading to the end of its expansion plans in Austria. Although Binance is facing difficulties in obtaining licenses in Europe, it currently holds Virtual Asset Service Provider (VASP) licenses in Spain, France, Italy, Sweden, Lithuania, and Poland.
