Binance's Cyprus unit has applied to be removed from Cyprus' register of crypto asset service providers, Cyprus Securities and Exchange Commission.
It had announced its registration with the Cyprus Securities and Exchange Commission in October 2022.
Cryptocurrency exchange Binance said it asked for the registration to be rescinded so it can focus on meeting the requirements of the European Union's Markets in Crypto Assets (MiCA) legislation.
International Investment reported last week that the Securities and Exchange Commission has sued Binance over a litany of securities law violations, alleging the firm engaged in an "extensive web of deception".
The Cyprus Securities and Exchange Commission website says the exchange is "under examination for application for deregistration," without giving a reason.
CoinDesk reported that a Binance spokesperson said in an email: "We are working hard to prepare our business to be fully compliant with MiCA when it is implemented in the next 18 months."
"To that end, we have made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU."
The Cyprus registration would have allowed Binance to offer spot trading, custody and other services in compliance with Cyprus's anti-money laundering and counter-terrorist financing rules.
