Binance, the world’s leading cryptocurrency exchange based on trading volume, has faced another setback recently. The exchange announced its withdrawal from the Netherlands due to the inability to register as a Virtual Asset Service Provider (VASP) with the Dutch regulatory authority.
In a tweet from the official Twitter account, Binance expressed regret, stating,
We regret to inform you that Binance will no longer operate in the Dutch market as we were unable to obtain VASP registration from the Dutch regulator.
Binance’s Farewell to the Netherlands
Despite this setback, Binance assures its commitment to collaborating with regulators worldwide. The exchange aims to focus on ensuring full compliance with the Markets in Crypto Assets (MiCA) regulations. Surprisingly, Binance, led by CEO Changpeng Zhao, has already obtained a VASP license in other European countries.
Binance already adheres to the EU’s anti-money laundering and anti-terrorism financing standards in countries such as France, Italy, Spain, Poland, Sweden, and Lithuania. In Germany, the crypto exchange submitted an application to the relevant authority, BaFin, in September 2022.
Regarding the challenges in the Netherlands, Binance issued an official statement highlighting the extensive registration process it underwent. Although the exchange explored various alternative methods to serve Dutch residents while complying with local regulations, it failed to secure VASP registration in the Netherlands.
However, Binance remains determined to obtain the necessary approvals in the Netherlands. Meanwhile, Dutch users have been notified via email about the implications of this news and the steps they should take.
With immediate effect, Binance will no longer accept new users residing in the Netherlands.
Encouraging Dutch Users to Take Action
Binance urges its Dutch users to take appropriate action by withdrawing their assets from their accounts promptly. Existing users residing in the Netherlands will have until 17 July 2023, 00:00 UTC, to withdraw their assets from the trading platform.
Binance Confronting Challenges
Binance is currently facing scrutiny from several countries. Apart from the US Securities and Exchange Commission (SEC) filing a lawsuit against Binance US, the exchange’s Cyprus unit, Binane, has requested to be removed from the Cyprus Registry of Crypto Asset Service Providers, as revealed on Wednesday.
The reasons and timing behind Binance’s request for deregistration remain unclear. The world’s largest exchange had only announced its registration with the Cyprus Securities and Exchange Commission in October 2022.
Recent rumors have surfaced suggesting that Binance engaged in spot-marketing Bitcoin to support BNB’s value. However, there is no concrete evidence to support these claims, only the suggestion that preventing the liquidation of the exploiter of the BSC’s Bridge on the Venus Protocol at $220 dollars was the motive.