New York-based crypto exchange Gemini has announced its decision to exit the Netherlands, mirroring the move made earlier by Binance. The company attributes this decision to its inability to meet the regulatory requirements imposed by the De Nederlandsche Bank (DNB). However, Gemini expresses its intention to re-enter the Dutch market.
Suspension of Operations by Mid-November
In a communication to its Dutch user base on September 26, Gemini urges them to either withdraw their assets or transfer them to an alternative wallet address. The platform is set to suspend operations in the Netherlands by November 17, citing DNB’s stringent regulations on crypto exchanges.
Gemini’s letter emphasizes:
“We kindly ask you to proceed in emptying your Gemini account, ensuring that you no longer have a balance on your account as of November 17, 2023.”
Furthermore, Gemini recommends users transfer their funds to Bitvavo, a local crypto exchange registered with the DNB. Established in 2018 and a member of the Dutch Association of Bitcoin Companies, Bitvavo provides a viable alternative for Dutch users affected by Gemini’s withdrawal.
Gemini outlines its commitment to returning to the Dutch market after ensuring its business is “fully compliant” with the new regulations on crypto assets. This is as outlined in the Markets in Crypto-Assets regulations (MiCA).
Parallel Move by Binance
In the summer of 2023, Binance, a global competitor of Gemini, also halted operations in the Netherlands. This was also due to non-compliance with DNB regulations. The DNB’s press officer, Tobias Oudejans, indicated that returning to the Dutch market could be possible for Binance through compliance with MiCA, which unifies the European Union’s requirements for crypto companies.
Oudejans stated,
“It is not yet clear in what way MiCA will be implemented in the Netherlands, but indeed it looks like it will be a different law than the WWFT, and possibly on a European level, there may be access to the Dutch market for registered entities from other EU-countries.”
Regulatory Landscape in the Netherlands
Currently, 37 virtual asset providers, including eToro, Coinbase, Crypto.com, and BitPay, are registered with the DNB. The evolving regulatory landscape underscores the importance for crypto companies to adapt and comply with emerging standards.
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