Binance Shuts Down in Netherlands After License Bid Fails

 

Binance Shuts Down in Netherlands After License Bid Fails
After an unsuccessful attempt to acquire a virtual asset service provider (VASP) license, Binance, a prominent global cryptocurrency exchange, has made the decision to discontinue its services in the Netherlands. 



The termination of these services is effective immediately, thereby preventing new customers from the Netherlands from opening accounts on the platform. Starting from July 17, existing Dutch customers will have the option to solely withdraw their assets from the Binance platform, as no further transactions such as purchases, trades, or deposits will be feasible.

Binance stated that it diligently explored various alternatives to cater to the needs of Dutch residents while adhering to local regulations. However, none of these alternatives provided a viable path for obtaining VASP registration.

The crypto exchange has initiated the process of sending informative emails to its Dutch customers, providing them with detailed instructions regarding the necessary actions they need to take concerning their Binance accounts.

In April 2022, Binance, the crypto exchange, faced an administrative fine exceeding $3 million for operating in the Netherlands without the necessary license and registration. The Dutch central bank emphasized the extensive customer base and substantial daily trading volume, resulting in the imposition of the significant penalty.

Binance, in its official announcement, highlighted its adherence to the standards set by the European Union for the prevention of money laundering and financing of terrorism. 

The exchange pointed out its registration in various EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania, as evidence of its compliance with EU regulations.

Shortly after revealing its exit plans from the Dutch market, Binance also came under scrutiny for potential deregistration in Cyprus. The Cyprus Securities and Exchange Commission officially announced that it was examining Binance Cyprus for deregistration. 

Binance responded by stating its commitment to full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months and its focus on the broader EU market.

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