Binance Exits Dutch Market
Binance, a global cryptocurrency exchange, has ceased operations in the Netherlands after their attempt to secure a Virtual Asset Service Provider (VASP) license proved unsuccessful, thus making an exit from the Dutch market.
The cessation of services is effective immediately, and no new customers from the Netherlands can register for an account on the crypto exchange. Starting from July 17th, existing Dutch customers will only be able to withdraw their assets from the Binance platform, and no further purchases, trades, or deposits will be accepted from this day on.
Binance asserted that it had investigated many potential methods to abide by Dutch regulations and serve its inhabitants. Nevertheless, none of these routes provided a means to register as a VASP.
The crypto exchange is currently sending emails to its Dutch customers containing detailed instructions regarding what they must do next with their Binance accounts.
In April 2022, Binance was given an administrative fine of more than $3 million for operating in the Netherlands without the necessary license and registration. The Dutch central bank stated that the crypto exchange had a large number of customers in the country and a substantial daily trading volume of billions, thus the hefty fine.
Binance Focusing on EU Market
The situation of cryptocurrency in Southern Europe: Malta is at the forefront.
The crypto exchange emphasized in its statement that it adheres to the European Union regulations on thwarting money laundering and terrorism financing. To demonstrate its EU compatibility, Binance mentioned its registration in some EU countries, such as France, Italy, Spain, Poland, Sweden, and Lithuania.
Binane’s decision to leave the Dutch market has been made shortly after news of its withdrawal from Cyprus came to light. On June 14th, the Cyprus Securities and Exchange Commission announced on its website that Binance Cyprus was being “examined for application for deregistration”. When contacted by Cointelegraph, Binance stated that they are currently focused on meeting the requirements of the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months, and are thus concentrating on the European Union market.
Can you rely on crypto exchanges following the failure of FTX?
Subscribe to our email newsletter to get the latest posts delivered right to your email.