Binance Netherlands exit — Dutch central bank says registration failings are confidential

Reasons for Binance’s Unsuccessful Attempt to Gain VASP License in Netherlands

The reasons for Binance’s unsuccessful attempt to gain a Virtual Asset Service Provider (VASP) license in the Netherlands are unknown due to the confidentiality regulations imposed by the Dutch central bank’s supervisory laws.

On June 16, Binance declared that, as they had not been given the go-ahead by De Nederlandse Bank (DNB), their services in the Netherlands would be terminated immediately. From July 17, Dutch customers will only be able to withdraw their assets from the platform, with trading and deposits having been discontinued on the date of the announcement.

Binance asserted that it had gone through a thorough registration process to acquire a VASP license in the Netherlands and had looked into “alternative methods” to serve Dutch citizens in the nation. The exchange declared that it would persist in its endeavor to obtain permission to offer its services and products in the country.

Cointelegraph contacted Tobias Oudejans, DNB press officer for supervision, fintech, cryptocurrencies, resolution and payment systems, to find out the last details concerning Binance’s unsuccessful attempts to register.

Oudejans stated that, due to the legal requirements of supervisory laws, the central bank was unable to divulge further information regarding Binance’s registration.

Oudejans stated that the DNB wanted to emphasize that its perceived quietness on this particular supervisory outcome and other related matters “could mistakenly be assumed to be a reluctance to comment,” but was required by Dutch regulations.

Binance has been added to the roster of 35 VASPs registered with the DNB, alongside notable names such as Coinbase Custody International, Coinbase Europe, eToro (Europe), BitPay and Bitstamp.

How MiCA Can Help Europe Become a Digital Asset Hub Under the EU’s New Cryptocurrency Regulations

Mr. Oudejans stated that the VASP registration requirements in the Netherlands are in line with the requirements for other financial institutions regulated by the DNB, which are based on the Netherlands Anti-Money Laundering and Anti-Terrorist Financing Act.

The European Union’s recently issued Markets in Crypto-Assets regulation (MiCA) could give Binance an alternate way to conduct business in the Netherlands by 2024, according to Oudejans. To gain access to the Dutch market, the global exchange must meet the requirements of other EU member states.

Binance has already made it clear that it is intensifying its efforts to adhere to the new EU regulations stipulated in MiCA.

In July 2022, the DNB imposed a fine of 3.3 million euros ($3.6 million) on Binance for running without authorization in the Netherlands.

In September 2022, Coinbase was granted permission by the DNB to begin its expansion from the United States into Europe. The American exchange is currently embroiled in a contentious legal dispute with the Securities and Exchange Commission, who are asserting that Coinbase has been operating without proper registration as a securities exchange, broker, and clearing agency.

Opinion: Republican Crypto Enthusiasts Almost as Detrimental as the Democratic “Anti-Crypto Army”

Magazine: Opinion: Republican crypto enthusiasts almost as detrimental as the Democratic “anti-crypto army”.

Categorized in:

Tagged in: