Binance has exited the Dutch virtual assets market. The largest cryptocurrency exchange by trading volume made the revelation today via a blog post. In the post, Binance disclosed that by July 17, 2023, it will no longer allow users from the Netherlands to use its platform. Consequently, the cryptocurrency exchange added that only resident users will be permitted to withdraw their funds from Binance.
Furthermore, Binance added that users from the country can no longer purchase, trade, or deposit virtual assets on the platform. The cryptocurrency exchange went on to beseech affected users to withdraw their assets from its platform before the deadline. More so, the prominent cryptocurrency exchange added that it decided to exit the Dutch virtual assets market after failing to secure an operational license in the country.
Additionally, the crypto exchange illuminated that it tirelessly attempted to secure a virtual asset service provider (VASP) license with the regulator in the Netherlands. Also, Binance stressed how it accessed various means to ensure that it provides services that are in line with the regulations of the country. However, all these efforts were futile, thus compelling the cryptocurrency exchange to exit the Dutch virtual assets market.
Nevertheless, Binance established that it will push more to obtain an operational license in the country. The prominent cryptocurrency exchange stressed its commitment to complying with the European Union regulation on money laundering and financing terrorism. With that, the exchange added that it has been able to secure operational licenses in countries like France, Italy, Spain, Poland, Sweden, and Lithuania.
Background to the Exit of Binance from the Netherlands virtual asset market
Binance and regulators in the Netherlands have been at loggerheads since 2021. Recall that the Dutch Central Bank first raised alarm about the failure of the exchange to register duly with it. Consequently, the regulator slammed Binance with a $3.4 million fine. Then, the apex financial institution in the country stated how on various occasions it attempted to call the crypto exchange to others but all the efforts were fruitless.
Likewise, the Dutch Central Bank at a time, slammed Coinbase with a fine like Binance over regulatory compliance. Now, Binance revealed that despite quitting the Dutch market, it will turn more attention to ensuring that its business practices are in line with the new EU rules on crypto-assets (MiCAR). Meanwhile, Binance noted that it has communicated the development to affected users via mail.