- No new customers in the Netherlands can open accounts with Binance
- The Dutch government fined Binance, they paid over $3 million
- Exchange promises "full compliance" with the EU’s MiCA regulation
The world’s biggest cryptocurrency exchange has terminated operations in the Netherlands. Binance is leaving the Dutch market because it wasn’t issued a virtual asset service provider (VASP) license.
Its services were terminated upon announcement. No new customers based in the Netherlands are allowed to open accounts with Binance, Cointelegraph reported. Existing clients will only be able to make withdrawals from the exchange from July 17. No further deposits, trades, or purchases will be possible.
No “avenues” to license
According to the exchange, it made many attempts to serve customers in the Netherlands in compliance with the country’s laws, but there were no alternative “avenues” to VASP registration. Binance is sending its Dutch customers emails with detailed information about what to do with their accounts now.
Dutch govt levied $3M+ fine
In April last year, the Dutch government levied an administrative fine on the exchange of over $3 million for operating on its territory without a license and registration. The country’s central bank maintained Binance had a lot of customers in the country and its daily trading volume was worth billions, which justified the fine in that amount.
Binance pointed out it complies with EU laws against money laundering and terrorist financing. To prove compliance, the exchange cited its registration in Spain, Italy, France, Sweden, Poland, and other EU countries.
Binance announced Cyprus exit
Binance also announced plans to exit Cyprus recently. On June 14, the Cyprus Securities and Exchange Commission listed the exchange’s local arm as “under examination for application for deregistration.”
Binance reported it was focused on achieving full compliance with the EU’s new Markets in Crypto-Assets (MiCA) regulation in the next year and a half.
On June 6, it emerged the US Securities and Exchange Commission filed a lawsuit against Binance and its founder and CEO, Changpeng "CZ" Zhao. Allegedly, the exchange violated several federal securities laws.
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