Binance To Leave Netherlands After Failing To Acquire VASP License

Republished By Plato

Followers: 0

Binance is set to exit the Netherlands after its attempts to secure a virtual asset service provider (VASP) license failed.

Starting from today, the crypto exchange is no longer registering new users residing in the country. It is also sending emails to existing users with information regarding their accounts and any assets they currently have on the platform, Binance said in an announcement Friday.

The company added that starting July 17, trading in the Netherlands will be halted and existing users will only have the option of withdrawing funds from its platform.

“Binance has been in a comprehensive registration application process as a virtual asset service provider (VASP) with the Dutch regulator,” the exchange said in a statement. “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.”

We regret to announce that Binance is leaving the Dutch market as we have been unable to register as a VASP with the Dutch regulator.

We continue to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business…

— Binance (@binance) June 16, 2023

The exchange added that it “will continue striving to obtain authorizations” that will allow it to provide products and services to Dutch users.

Furthermore, Binance claims that it is “already compliant with EU standards on the prevention of money laundering and financing of terrorism,” something that it says is evidenced by registrations obtained in other European countries, including France, Italy, Spain, Poland, Sweden and Lithuania.

Binance didn’t immediately respond to Decrypt’s request for comment.

Dutch regulator’s previous warnings

Last year, Binance was fined $3.35 million by the Dutch central bank for offering services in the Netherlands without the appropriate license.

Prior to that, in August 2021, the Dutch regulator warned the crypto exchange, the world’s largest in terms of trading volume, that it was operating in the Netherlands without the appropriate license.

Today’s news also comes hot on the heels of Binance applying to deregister with the Cyprus Securities and Exchange Commission.

While the the Cyprus regulator didn’t share the reasons behind the move, a Binance spokesperson told Decrypt that the exchange was “working hard” to be fully compliant before the European Union’s Markets in Crypto Assets (MiCA) legislation is implemented next year.

According to the exchange, it is now focusing its “efforts on fewer regulated entities in the EU, especially our larger registered markets where we already have a mature footprint, including France, Italy and Spain.”

Earlier today, the Paris public prosecutor’s office revealed that Binance’s French unit is under investigation by local authorities for the “illegal” provision of digital asset services and “aggravated money laundering.”