Binance’s official exit from the Netherlands follows the exchange’s inability to secure an official license with Dutch regulators.
Binance has announced its exit from the Netherlands. According to a The official publicationthe world’s largest cryptocurrency is leaving the Dutch market because it was unable to secure a license as a Virtual Asset Service Provider (VASP).
In the exit announcement, Binance states that it will no longer accept new users in the Netherlands with immediate effect. Also, apart from withdrawals, all services will be suspended for existing users residing in the Netherlands from 00:00 on Saturday.
Binance said it was trying to secure official registration as a VASP with the Dutch authorities, but with no luck. The advertisement states:
“Although we have explored many alternative avenues for servicing Dutch residents in accordance with Dutch regulations, this unfortunately has not resulted in a VASP being registered in the Netherlands at this time.”
The exchange added that it adheres to the standards of money laundering and terrorist financing in several European Union countries, including Sweden, Poland, Lithuania, Spain, Italy and France. Binance continued to stress its commitment to working with regulators and promised to leave open talks with the Dutch authorities.
As Binance prepares to exit, existing users in the Netherlands will receive emails with details about their accounts and assets. The email will also include the required steps for each user. Binance ended by saying:
“While Binance is disappointed that this has become necessary, it will continue to deal productively and transparently with Dutch regulators.”
Binance fined in the Netherlands
In July last year, the Dutch central bank (DNB) fined Binance €3.3 million — about $3.35 million — for operating in the country without registration. in advertisement At the time, the Dutch regulator noted that it issued a public warning to Binance nearly a year ago. The lead bank also explained 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 cryptocurrency company in the world. The offense was a “category three fine” of a minimum of €2m and a maximum of €4m.
exit from other countries
Binance recently announce exit from the Canadian market. According to the exchange, Canada is no longer an attractive market for several reasons, including the rules surrounding stablecoins and investor limits. Binance stated that it had delayed the decision to exit the market for a long time as it tried to explore other options, to no avail. Like the notice announcing its exit from the Netherlands, Binance also said that it will continue to work with Canadian regulators and hopes to “return to the market one day.”
Binance also no longer holds a derivatives license in Australia. The Australian Securities and Investments Commission (ASIC) published a press release Saying it has revoked the license held by Ozlies Trading Pty Ltd, a local subsidiary of Binance. According to the statement, Binance requested the cancellation. In February, ASIC opened an investigation into Binance, investigating the alleged illegal closure of some derivatives accounts.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.