Binance, the world's largest cryptocurrency exchange, is bidding farewell to the Netherlands as it has been unable to secure registration as a virtual asset service provider (VASP). The decision to withdraw from the Dutch market comes in the wake of Binance Cyprus Ltd., the exchange's Cypriot entity, seeking removal from the country's register of crypto asset service providers.
Effective July 17, Binance will restrict its services for existing customers in the Netherlands. While withdrawals will still be possible, deposits, purchases, and trades will no longer be available. The platform underlined that it will not accept new users residing in the Netherlands, effective immediately.
Despite these developments, Binance expressed its commitment to obtaining the necessary authorizations to offer its products and services in the Netherlands. It emphasized its compliance with the regulatory frameworks of other European Union (EU) member states and its readiness to fully comply with the recently adopted Markets in Crypto Assets (MiCA) rules.
Binance has also pledged to engage with Dutch regulators in a productive and transparent manner going forward. The exchange had previously faced warnings and fines from the Dutch monetary authority, De Nederlandsche Bank, for operating without proper registration, according to a report by Reuters.
This decision by Binance to exit the Dutch market comes amidst growing regulatory scrutiny. Recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, its founder Changpeng Zhao, and its American subsidiary for alleged violations of securities laws in the United States. Additionally, Binance has announced its plans to leave Canada and Australia.
Earlier this week, it was revealed through media reports that Binance Cyprus Ltd. had requested to be delisted from the register of crypto asset service providers in Cyprus. The move is aimed at allowing Binance to concentrate on its other regulated units in EU countries like France, Italy, and Spain ahead of the forthcoming implementation of the EU's new crypto regulations in the next 18 months. A spokesperson emphasized the company's commitment to preparing its business for full compliance with MiCA.
Binance's departure from the Netherlands represents a setback for the exchange's plans in the region. However, Binance remains an influential player in the global cryptocurrency landscape, continuing to adapt and navigate the evolving regulatory environment.
