Per a report by Finance Forward, the German financial watchdog Bafin has reportedly denied Binance exchange Application for a crypto custody license in Germany.

The denial, although yet to be confirmed, will be a notable setback for Binance operations in the country.

In its quest to expand services and operate in line with the regulatory requirement in Germany, Binance has been seeking a crypto custody license in the country, however, the reason for the denial is still unclear, although there were reports that the reason is because of Binance’s ongoing regulatory battle.

Despite the setback, Binance remains committed to complying with BaFin’s requirements and is engaged in a detailed and ongoing process to meet these standards. The exchange has not yet commented publicly on the reported denial.

This report came amid a series of regulatory battles between Binance and regulators. Meanwhile, earlier this month, Binance withdrew its application for a crypto custody license in Austria, it also terminated its registration with Cyprus’ securities regulator, and ceased operations in the Netherlands following a failed registration attempt. It was also ordered to halt operations in Belgium and is facing allegations from the US securities regulator of operating an unregistered trading platform.

However, the exchange stated that it is fully committed to operating within the regulatory guidelines of the global financial regulators and is preparing its business to be fully compliant with the upcoming EU rules on crypto-assets (MiCA).