Crypto Exchange Binance Leaves Netherlands After Failing to Get A License
Earlier today on June 16, crypto exchange Binance announced its plans to exit the Netherlands crypto market after it failed to secure a virtual asset service provider (VASP) license, for operating in the region.
The termination of Binance’s services in Netherlands shall happen with immediate effect. Thus, no customers from the Netherlands will be able to open an account with the crypto exchange henceforth.
From July 17 onwards, residents of Netherlands will only be able to withdraw their funds from the platform. Also, no further deposits, trades, and purchases will be possible today onwards. In an official announcement, Binance wrote:
“We regret to announce that Binance is leaving the Dutch market. This unfortunately means that no new users residing in the Netherlands will be accepted as of today. Starting from 17 July, 2023, existing Dutch resident users will only be able to withdraw their assets from the Binance platform. No further purchases, trades or deposits will be possible. We encourage those users to take appropriate action by withdrawing assets from their accounts.”
Binance said that they exchange explored several alternatives in order to serve Dutch residents in compliance with the local regulations. However, there were no avenues offered to the exchange to gain the VASP license. “Although Binance explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately this has not resulted in a VASP registration in the Netherlands at this time,” the exchange noted.
Binance has started sending out emails to its Dutch customers informing them about the development and the next steps they need to take with their Binance accounts. The crypto exchange said that the would continue to engage with the Dutch regulators.
In April 2022, the crypto exchange received a big fine of over $3 million for operating in the country without the proper license and registration. The Dutch central bank said Binance had many customers and a high trading volume in the country, which led to the hefty penalty.
Binance emphasized that it follows the European Union rules to prevent money laundering and financing of terrorism. They mentioned that they are registered in EU countries like France, Italy, Spain, Poland, Sweden, and Lithuania to show that they comply with EU standards.
This is yet another tough call for crypto exchange Binance which is undergoing severe regulatory challenges currently while dealing with the US SEC.