Binance gets Cyprus crypto license

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The Cyprus Securities and Exchange Commission (CySEC) has granted cryptocurrency exchange Binance Class 3 registration as a crypto asset services provider.

Following in the footsteps of rival crypto exchange FTX, which set up a Cypriot entity in March, Binance is now permitted to offer spot, custody, staking and card services in compliance with CySEC’s anti-money-laundering and counter-terrorist-financing rules.

Binance has similar registrations in France, Spain and Italy.

“Binance has some of the most thorough AML, and CTF compliance policies in the industry,” Binance CEO Changpeng Zhao said in a blog post.

“Recognition of the efforts we have made to be on the leading edge of compliance that our registration in Cyprus represents is testament to that.”

Binance’s Executive Vice President of Europe, Martin Bruncko, said: “Registration in Cyprus is an important step in our European growth and is another sign of our commitment to the region.

“We look forward to building out our local team in Cyprus and helping to develop the local crypto ecosystem”.

Binance is the largest global cryptocurrency exchange in terms of trading volume.

It has established its dominance without obtaining any proper regulatory permission.

However, a regulatory backlash against the exchange has forced it to change its strategy and seek licenses.

Outside Europe, it has expanded its regulated presence in the Middle East with permissions in Abu Dhabi, Dubai and Bahrain.

Cyprus, a favourite for forex and CFDs brokers, is now attracting cryptocurrency exchanges with its clear guidelines.

FTX and Crypto.com, two competitors of Binance, also received the Cypriot license.

CySEC Chair George Theocharides has warned retail investors against the risks of crypto investments.

He advocated for the ‘urgent need’ for crypto regulations and counted the benefits of the proposed EU Regulation on Markets in Crypto-Assets.