Binance Fails to Secure VASP License in the Netherlands. Details
- Binance recently announced that it will leave Australia, Canada, and Cyprus.
- The crypto exchange revealed that it received registration in European Union countries like Lithuania, France, Sweden, Italy, and Spain.
Cryptocurrency exchange Binance is quitting its operations in the Netherlands after failing to receive a license as a virtual asset service provider (VASP), which verifies that it complies with anti-money laundering (AML) regulations. The news adds to the pile of setbacks for the crypto exchange.
Following the termination of its service in the Netherlands, Dutch users will only be able to withdraw their funds from the platform and will be unable to trade, deposit, or conduct other forms of transactions. A Binance spokesperson said the exchange was disappointed by the decision but plans to “engage productively and transparently with Dutch regulators.”
Binance said it considered several other options for providing services to Dutch citizens in accordance with local laws. However, none of these routes provided a way to register for VASP. The crypto service provider is reportedly communicating with Dutch users via email with detailed instructions on what they should do next with their Binance accounts.
Binance said in a statement,
We regret to announce that Binance is leaving the Dutch market. This unfortunately means that no new users residing in the Netherlands will be accepted as of today. Starting from 17 July, 2023, existing Dutch resident users will only be able to withdraw their assets from the Binance platform. No further purchases, trades or deposits will be possible. We encourage those users to take appropriate action by withdrawing assets from their accounts.
The decision to exit the Netherlands comes a year after Binance received an administrative penalty of more than $3 million for operating without the necessary license and registration. Dutch authorities claimed that the crypto exchange had a significant number of customers and a high daily trading volume, which led to the hefty fine.
Binance hasn’t had the best of times with regulators. French authorities announced on Friday that the crypto exchange had been under investigation since February for money laundering. Binance however, maintains that it is compliant with local policies and plans to focus on regions where it is licensed to operate.
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