Global cryptocurrency exchange Binance has terminated its services in the Netherlands, exiting the Dutch market after failing to obtain a virtual asset service provider (VASP) license.
The termination of service is effectively immediately, and no new clients from the Netherlands can open an account with the cryptocurrency exchange. From July 17th, existing Dutch customers will only be able to withdraw assets from the Binance platform and will not be able to make further purchases, trades or deposits starting today.
Binance claims it explored a number of alternative avenues to serve Dutch residents in compliance with local regulations. However, there is no such avenue that provides a path to VASP registration. The cryptocurrency exchange is currently sending emails to its Dutch customers with com Prehensive information on the The next steps they need to take with their Binance accounts.
In April 2022, the cryptocurrency exchange was slapped with an administrative fine of more than $3 million for operating in the country without the required license and registration. At the time, the Dutch central bank imposed a hefty fine, claiming that Binance had a large customer base in the country with daily trading volumes in the billions. In its announcement, the cryptocurrency exchange emphasized that it complies with the standards of the European Union's rules on preventing money laundering and the financing of terrorism. Binance cites its regist ration in EU countries such as France, Italy, Spain, Poland, Sweden, and Lithuania to demonstrate its EU compliance.
Binane's departure from the Dutch market comes within days of its plans to exit Cyprus surfaced. On June 14, the CySEC stated on its website that Binance Cyprus was “under review for a deregistration application.” At the time, Binance told that it was focused on becoming fully compliant with the new Markets in Cryptoassets (MiCA) regulations within the next 18 months, thus focusing on the larger EU market.
