After failing to secure a virtual asset service provider (VASP) license, Binance, a prominent cryptocurrency exchange, has made the decision to withdraw from the Netherlands. As a result, the exchange has urged its users in the country to promptly withdraw their funds. This marks Binance’s departure from the Dutch market.
Binance has ceased its services with immediate effect, prohibiting new customers from the Netherlands from opening accounts on the crypto exchange. Starting July 17, existing Dutch customers will only have the ability to withdraw their assets from the platform. No additional purchases, trades, or deposits will be permitted. Despite exploring various options to adhere to local regulations, Binance was unable to find a viable path for VASP registration.
In April 2022, the crypto exchange faced a substantial administrative fine of over $3 million for conducting operations in the country without the necessary license and registration. The Dutch central bank justified the hefty penalty by citing Binance’s substantial customer base and significant daily trading volume, reaching billions.
In its announcement, the crypto exchange emphasized its adherence to European Union standards regarding the prevention of money laundering and financing of terrorism. Binance showcased its compliance with EU regulations by highlighting its registration in several EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania.
Binance’s decision to exit the Dutch market coincides with its recent plans to withdraw from Cyprus. The Cyprus Securities and Exchange Commission publicly announced on June 14 that Binance Cyprus is currently undergoing an examination for deregistration. Binance has stated its commitment to achieving full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months and is therefore prioritizing its efforts on the larger EU market.