The global cryptocurrency exchange; Binance, ha put an end to its services in the Netherlands, leaving the Dutch market after a failed attempt to obtain a Virtual Asset Service Provider (VASP) license.
The cessation of services is effective immediately, and no new clients from the Netherlands will be able to open an account on the exchange. Starting July 17, existing Dutch customers will only be able to withdraw assets from the Binance platform, and no further purchases, trading, or deposits will be possible from today.
Binance claimed that explored many alternative ways to serve Dutch residents in accordance with local regulations. However, neither of those avenues offered a path to registration as a VASP.
The exchange is currently sending out emails to its Dutch clients with comprehensive information on the next steps they need to take with their Binance accounts.
We regret to announce that Binance is leaving the Dutch market as we have been unable to register as a VASP with the Dutch regulator.
We continue to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business…
—Binance (@binance) June 16, 2023
In April 2022, the exchange received an administrative fine of more than $3 million for operating in the country without the necessary license and registration.. At the time, the Dutch central bank claimed that Binance had a large customer base in the country and a significant daily trading volume running into the billions, hence the hefty penalty.
The exchange stressed in its announcement that it complies with European Union regulations on the prevention of money laundering and financing of terrorism. Binance cited its registration in EU countries such as France, Italy, Spain, Poland, Sweden, and Lithuania to prove that it complies with European regulations.
Binance’s exit from the Dutch market comes just days after its plans to leave Cyprus came to light. On June 14, the Cyprus Securities and Exchange Commission placed Binance Cyprus “under review for delisting” on its website. At the time, Binance told Cointelegraph that she is focused on fully complying with the new Markets in Crypto-Assets (MiCA) regulation in the next 18 months and is therefore concentrated in the largest market in the EU.
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