German regulator raised concerns about Binance CEO prior to license application withdrawal: Report
The German Federal Financial Supervisory Authority, or BaFin, reportedly advised crypto exchange Binance to withdraw its licensing application based on concerns with CEO Changpeng Zhao (CZ) and the firm’s structuring.
According to a July 28 report from The Wall Street Journal, BaFin advised Binance that Zhao may not have passed a “fit and proper” test under the financial watchdog’s regulatory guidelines. The regulator’s guidelines for a license application state managing directors — in this case referring to CZ — must “have the required professional qualification and be of good repute to manage an institution and must dedicate sufficient time to performing their functions.”
BaFin also reportedly told Binance the company’s structure hindered regulatory supervision. Binance announced on July 26 that it had withdrawn its application in Germany, saying at the time the decision was based in part on focusing the company’s effort to become compliant with the European Union’s Markets in Crypto Assets (MiCA) framework.
A spokesperson for Binance told Cointelegraph The Wall Street Journal story was inaccurate. The exchange did not provide a specific response on the details regarding CZ at the time of publication.
In the United States, Binance faces legal actions brought by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) for allegedly violating securities laws and trading guidelines, respectively. Lawyers for the exchange requested the dismissal of the CFTC lawsuit in a July 27 court filing, claiming the commission had exceeded its authority.
Binance and CZ claim CFTC oversteps jurisdiction in legal filing, call for lawsuit dismissal. https://t.co/49viHYuHGE
Related: Binance may have
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