The official Binance 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 an official publication, the world’s largest crypto is leaving the Dutch market as it has been unable to secure a license as a virtual asset service provider (VASP).
In the exit announcement, Binance notes 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 resident in the Netherlands from 00:00 on Saturday.
Binance said it has been trying to secure official registration as a VASP with Dutch authorities but without luck. The announcement states:
“Although we explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately this has not resulted in a VASP registration in the Netherlands at this time.”
The exchange added that it complies with money laundering and terrorism financing standards in several EU countries, including Sweden, Poland, Lithuania, Spain, Italy, and France. Binance continued by stating its commitment to working with regulators and promised to leave conversations with Dutch authorities open.
As Binance prepares for its exit, existing users in the Netherlands will receive emails with details about their accounts and assets. The email will also include the steps required of each user. Binance ended by saying:
“While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators.”
Binance Fined in the Netherlands
In July last year, the central bank of the Netherlands (DNB) fined Binance 3.3 million euros – about $3.35 million – for operating in the country without registration. In an announcement at the time, the Dutch regulator noted that it had issued Binance a public warning nearly a year before. The apex bank also clarified that it arrived at the fine based on Binance’s large trading volume, number of customers in the country, and the fact that Binance is the world’s largest crypto firm. The violation was a “third category fine” with a minimum amount of 2 million euros and a maximum of 4 million euros.
Exit from Other Countries
Binance recently announced its exit from the Canadian market. According to the exchange, Canada is no longer an attractive market for a few reasons, including rules surrounding stablecoins and investor limits. Binance mentioned that it postponed the decision to exit the market for a long time as it tried to explore other options but to no avail. Like the notice announcing its exit from the Netherlands, Binance also said it would continue engaging with Canadian regulators and hopes to “someday return to the market”.
Binance also no longer holds a derivatives license in Australia. The Australian Securities and Investments Commission (ASIC) published a press release saying it revoked the license held by Oztures Trading Pty Ltd, a local Binance subsidiary. According to the release, Binance requested the revocation. In February, the ASIC opened an investigation into Binance, probing the alleged unlawful closure of some derivatives accounts.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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Source: https://www.coinspeaker.com/binance-exit-netherlands-vasp/