In a recent turn of events, global cryptocurrency exchange Binance has made the decision to terminate its services in the Netherlands, thereby exiting the Dutch market altogether. This strategic move comes in the wake of an unsuccessful attempt by Binance to acquire a virtual asset service provider (VASP) license, leading to the company’s withdrawal from the country.
With immediate effect, new customers from the Netherlands are no longer able to open accounts with Binance. Moreover, existing Dutch customers will face restrictions as of July 17. They will only be allowed to withdraw their assets from the platform, as Binance discontinues new purchases, trades, and deposits for this group of users.
Binance clarified that it had explored various alternative options in an effort to comply with local regulations and continue serving Dutch residents. However, none of these avenues provided a viable path towards VASP registration, leaving Binance with no choice but to halt operations in the Netherlands.
To facilitate a smooth transition, Binance is actively reaching out to its Dutch customer base through email communication. These emails contain comprehensive information outlining the necessary steps that customers need to take regarding their Binance accounts.
This recent development comes on the heels of Binance facing regulatory challenges in the past. In April 2022, the crypto exchange incurred an administrative fine exceeding $3 million due to its operation in the Netherlands without the required license and registration. The Dutch central bank justified the substantial penalty by emphasizing Binance’s significant daily trading volume in the country, coupled with its large customer base.
Notably, Binance has emphasized its adherence to European Union standards for preventing money laundering and financing of terrorism. The exchange pointed to its registration in several EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania, as evidence of its commitment to EU compliance.
The decision to exit the Dutch market is not an isolated incident for Binance, as the company’s departure from Cyprus has also recently come to light. The Cyprus Securities and Exchange Commission announced on June 14 that it was examining Binance Cyprus with regards to its application for deregistration. Binance clarified that its focus lies in achieving full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months, thus prioritizing the larger EU market.
As Binance navigates these regulatory challenges, its actions continue to shape the cryptocurrency landscape. The termination of services in the Netherlands serves as a reminder of the evolving regulatory environment that cryptocurrency exchanges must navigate to operate in different jurisdictions.
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