Global cryptocurrency exchange Binance has announced its exit from the Dutch market after failing to obtain a virtual asset service provider (VASP) license. The termination of services is immediate, preventing new customers from the Netherlands from opening accounts.
Existing Dutch customers will only be able to withdraw assets from Binance starting July 17, with no further purchases, trades, or deposits allowed.
Binance’s decision to terminate its services in the Netherlands stems from its unsuccessful attempt to acquire a VASP license. The termination is effective immediately, restricting new customer registrations.
Existing customers will face limitations, with withdrawals being the only permitted action from July 17 onwards. Binance’s efforts to comply with Dutch regulations were exhaustive but ultimately unsuccessful.
Binance emphasizes its compliance with European Union standards on preventing money laundering and financing of terrorism rules.
The exchange highlights its registration in several EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania, to demonstrate adherence to EU compliance standards. However, the inability to obtain a VASP license in the Netherlands has led to the cessation of services.
Binance’s troubles in the Dutch market are not new. In April 2022, the company was fined over $3 million for operating without the required license and registration.
The Dutch central bank imposed the penalty, citing Binance’s large customer base in the country and substantial daily trading volume amounting to billions. The regulatory scrutiny contributed to Binance’s decision to exit the market.
Coinciding with its Dutch market exit, Binance has also faced exit plans from Cyprus. The Cyprus Securities and Exchange Commission revealed that it is examining Binance Cyprus for deregistration.
Binance has stated its focus on full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months and prioritizing the larger EU market.
