Binance departs Netherlands – Crypto exchange giants Binance has announced that it will be leaving the Dutch market “with immediate effect”. This was made known in a statement on its official website on June 16.
The world’s largest cryptocurrency exchange by trade volume continues to trend for various reasons. According to the announcement, the termination will take effect from June 17 at 00:00 UTC.
“With immediate effect, no new users residing in the Netherlands will be accepted. Starting from 2023-07-17 at 00:00 UTC (2023-07-17 at 02:00 UTC+2),” the statement reads.
Binance made it known that existing Dutch resident users will be able to withdraw their assets from the platform before the commencement. Also, no further transactions including purchases, trades, or deposits will be possible on the platform for users in the Netherlands henceforth.
Binance made this decision after failing to obtain a virtual asset service provider (VASP) license. The crypto firm claims that it explored different options to service its Dutch-resident users in compliance with the Dutch regulators, however, it didn’t result in a VASP registration.
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Furthermore, existing Dutch resident users have been sent emails with information on steps they will need to take. Recall that in July 2022, the cryptocurrency exchange received an administrative penalty of more than $3 million for operating in the nation without registrations.
The Dutch central bank asserted that Binance had a sizable client base and a sizable daily trading volume in the nation at the time, which led to the steep fine.
Binance further asserted in its announcement that it is already cooperative with the European Union standards on the prevention of money laundering with evidence pointing to its registration in other EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania.
Binance expressed its disappointment in the development but promised to continue working and engaging productively and transparently with the Dutch regulators.
Meanwhile, the Dutch departure comes shortly after the company applied to be deregistered from Cyprus on June 14. Similarly, the Nigerian Securities and Exchange Commission declared Binance’s operation in the country illegal after failing to register with the agency.