Binance Shrinks EU Presence: Exits Netherlands after Cyprus

Crypto exchange Binance exited the Netherlands as it failed to obtain a virtual asset service provider (VASP) from the local regulator. The exchange immediately terminated the onboarding of new Dutch residents as customers, while all services, except withdrawals, to existing customers will be terminated on July 17.

The exchange asked its customers to withdraw their funds. It sends comprehensive details to Dutch customers about their accounts.

Binance Exits the Netherlands

“Binance has been in a comprehensive registration application process as a virtual asset service provider (VASP) with the Dutch regulator,” Binance noted in the announcement on Friday.

“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. Binance will continue striving to obtain authorizations to provide our products and services to users in the Netherlands.”

Binance, which is facing regulatory backlash in the US, has obtained approval for multiple licences in Europe. It has become a registered VASP in France, Italy, Spain, Poland, Sweden, and Lithuania, ensuring its anti-money laundering compliance in those markets.

It also obtained a license from the regulator in Cyprus but recently decided to renounce that one.

Hiccups in Its Dutch Operations

Last year, the central bank of the Netherlands slapped Binance with a monetary fine of €3.325 million for operating in the country without registration. The penalty was imposed after the Dutch bank mandated the registration of all crypto exchanges in the country in May 2020 with an aim to curb money laundering in digital assets.

“Binance is already compliant with EU standards on the prevention of money laundering and financing of terrorism as evidenced by its registrations in other EU countries,” the latest announcement stated. “Binance continues to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business ready to be fully compliant with the new EU rules on crypto-assets (MiCAR).”