According to a report published by the German magazine Finance Forward, the Federal Financial Supervisory Authority in Germany (BaFin) has rejected Binance’s request for a license to provide cryptocurrency custody services. The report states that the digital asset exchange, Binance, will not be able to expand its operations in Germany unless it obtains regulatory approval. Without this license, it will not be allowed to advertise, for example. German authorities have already targeted other cryptocurrency companies for this reason, including trading platforms like Crypto.com and Uniswap.

BaFin has declined to clarify the situation with journalists, with a spokesperson for the authority stating that individual companies are not commented upon. A representative for Binance was quoted as saying that this is an ongoing process and also stated, “We are confident that we have the right team and measures in place to continue our discussions with regulatory authorities in Germany.”

Binance has faced increasing regulatory pressure from supervisory authorities in Europe and other jurisdictions. Belgian authorities have ordered the cessation of all cryptocurrency services offered by the exchange, while public prosecutors in France have launched an investigation based on money laundering allegations.

In early June, Binance withdrew from the Dutch market after failing to register as a cryptocurrency service provider. The company also applied for deregistration in Cyprus and had its license revoked in the United Kingdom. Additionally, the company withdrew its application for a license in Austria.

This week, it was announced that the exchange is seeking a new banking partner for euro deposits and withdrawals after payment processor Paysafe announced its decision to stop supporting Single Euro Payments Area (SEPA) bank transfers to and from the cryptocurrency exchange.