March 27, 2024
Latest Cryptocurrency News

Binance Shuts Down Dutch Services Amid Regulatory Compliance Challenges

Binance, the global cryptocurrency exchange, has ceased its operations in the Netherlands after failing to secure a virtual asset service provider (VASP) license. The termination of services is immediate, meaning that new customers from the Netherlands cannot open accounts on the platform. Starting from July 17, existing Dutch customers will only be able to withdraw their assets from Binance, as further purchases, trades, and deposits will no longer be possible.

Binance made efforts to find alternative ways to comply with local regulations and cater to Dutch residents, but none of these options allowed for VASP registration. The exchange is currently sending detailed emails to its Dutch customers, providing them with information on the necessary next steps regarding their Binance accounts.

In April 2022, Binance faced a fine of over $3 million for operating in the Netherlands without the required license and registration. The Dutch central bank imposed the penalty, highlighting Binance’s substantial customer base in the country and its significant daily trading volume reaching billions.

Binance emphasized its adherence to the European Union’s standards concerning anti-money laundering and the prevention of financing terrorism. The exchange pointed out its registration in several EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania, as evidence of its compliance with EU regulations.

This withdrawal from the Dutch market follows closely after Binance’s plans to exit Cyprus became public. On June 14, the Cyprus Securities and Exchange Commission announced the examination of Binance Cyprus’s application for deregistration on its website. Binance stated that it is prioritizing full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months and, therefore, focusing on the larger EU market.

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