Binance exits the Dutch market with immediate effect.
The company also urges users to promptly withdraw their funds. This move comes after Binance’s unsuccessful attempt to secure a virtual asset service provider (VASP) license.
Immediate Termination of Services
Effective immediately, Binance has terminated its services in the Netherlands. As a result, individuals residing in the Netherlands will no longer be able to open new accounts on the platform. However, existing Dutch customers will have until July 17 to withdraw their assets from Binance.
Beginning today, they will no longer be able to engage in any new purchases, trades, or deposits.
Binance diligently explored various alternative solutions to serve the Dutch population while complying with local regulations. Unfortunately, none of these alternatives provided a viable path to obtaining a VASP registration.
However, to assist its Dutch customers with this transition, Binance is currently sending out detailed emails containing comprehensive information about the necessary actions they need to take regarding their Binance accounts.
Previous Fine and Compliance with EU Standards
In April 2022, Binance faced an administrative fine of over $3 million. This was as a result of operating without the required license and registration in the Netherlands. The Dutch central bank imposed this substantial penalty, citing Binance’s large customer base in the country and its significant daily trading volume, which reached billions.
In its announcement, Binance emphasized its adherence to European Union standards, particularly those relating to preventing money laundering and the financing of terrorism. Binance pointed to its registration in several EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania, as evidence of its compliance with EU regulations.
Cyprus Exit Plans
Coinciding with its departure from the Dutch market, Binance has also revealed plans to exit Cyprus. On June 14, the Cyprus Securities and Exchange Commission stated on its website that Binance Cyprus is currently “under examination for application for deregistration.” Binance responded to these developments by expressing its commitment to full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months. As a result, the exchange is currently focused on the larger EU market.
With its departure from the Dutch and potentially Cyprus markets, Binance continues to adapt its operations to comply with evolving regulations while maintaining its position as a leading player in the cryptocurrency industry.
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