The official exit of Binance from the Netherlands follows the exchange’s inability to obtain an official license from Dutch regulators.
Binance has announced its exit from the Netherlands. According to a official publicationthe world’s largest crypto is leaving the Dutch market because it was unable to obtain a license as a virtual asset service provider (VASP).
In the release announcement, Binance notes that it will no longer accept new users in the Netherlands with immediate effect. Additionally, with the exception of withdrawals, all services will be suspended for existing users residing in the Netherlands from 00:00 on Saturday.
Binance said it tried to obtain official registration as a VASP with Dutch authorities, but was unsuccessful. The announcement states:
“While we have explored many alternative avenues to serve Dutch residents in accordance with Dutch regulations, unfortunately this has not resulted in VASP registration in the Netherlands at this time.”
The exchange added that it complies with money laundering and terrorist financing standards in several EU countries, including Sweden, Poland, Lithuania, Spain, Italy and France. Binance went on to state its commitment to working with regulators and promised to keep conversations open with Dutch authorities.
As Binance prepares for its release, existing users in the Netherlands will receive emails with details about their accounts and assets. The email will also include the steps required of each user. Binance ended by saying:
“While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators.”
Binance condemned in the Netherlands
In July last year, the Dutch central bank (DNB) fined Binance €3.3 million – around $3.35 million – for operating in the country without registration. In a announcement at the time, the Dutch regulator noted that it had issued a public warning to Binance nearly a year prior. The apex bank also clarified that it arrived at the fine based on Binance’s large trading volume, the number of customers in the country, and the fact that Binance is the largest crypto company in the world. The offense was a “third category fine” of a minimum amount of €2 million and a maximum of €4 million.
Exit from other countries
Binance recently announcement its exit from the Canadian market. According to the exchange, Canada is no longer an attractive market for several reasons, including rules surrounding stablecoins and investor limits. Binance mentioned that it postponed the decision to exit the market for a long time as it tried to explore other options but to no avail. Similar to the notice announcing its exit from the Netherlands, Binance also said it will continue to engage with Canadian regulators and hopes “one day to return to the market.”
Binance also no longer holds a derivatives license in Australia. The Australian Securities and Investments Commission (ASIC) has issued a Press release saying it has revoked the license held by Oztures Trading Pty Ltd, a local subsidiary of Binance. According to the statement, Binance has requested the revocation. In February, ASIC launched an investigation into Binance, investigating the alleged illegal shutdown of certain derivative accounts.
Tolu is a Lagos-based cryptocurrency and blockchain enthusiast. He likes to demystify crypto stories to the essentials so that anyone, anywhere can understand without too much background knowledge. When not immersed in crypto stories, Tolu loves music, likes to sing, and is a movie buff.