Cryptocurrency exchange Binance has announced that it is ending its services in the Netherlands. The announcement follows a rejection for a license application
Binance closes its services in the Netherlands
This Friday, cryptocurrency exchange platform Binance announced that it was leaving the Netherlands. As a result, no more users from the country are being accepted, and from 17 July this year, the exchange will close its services. As a result, remaining investors will only be able to make withdrawals:
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
This decision is due to the fact that the platform did not obtain the licence it wanted in the jurisdiction:
“Binance went through a full application process to be registered as a virtual asset service provider with the Dutch regulator. Although we have explored many alternative avenues to serve Dutch residents in accordance with Dutch regulations, unfortunately this has not resulted in a registration […] at this time. “
This does not undermine Binance’s commitment to European compliance, and it says it will continue to work towards being “fully compliant with the new EU rules” once the MiCA regulation comes into effect. In this respect, its status as a crypto-asset service provider (CASP) should enable it to operate in compliance in all Member States.
The exchange also listed the European countries in which it is regulated:
- France;
- Italy;
- Spain;
- Poland;
- Sweden;
- Lithuania.
Binance in the face of regulators
In parallel, our colleagues at Le Monde reported yesterday morning that Binance was the target of an investigation in France. The reported charges include “illegally acting as a digital asset service provider (DASP)”, as well as “aggravated money laundering”.
We will have more to say about this case in a separate article shortly. However, David Prinçay, President of Binance France, confirmed that an inspection had indeed taken place last week, and that this was one of the eventualities that a financial institution could expect:
In France, on-site inspections by regulators and inspectors are part of the regulatory obligations with which all financial institutions must comply. We had an on-site visit last week by the relevant authorities. Binance,…
– David Prinçay (@davidprincay) June 16, 2023
After the tussle between the Securities and Exchange Commission (SEC) and its US arm, this is another thorn in the side of the group. Nevertheless, Binance.US and the SEC are said to have reached an agreement this week to avoid an asset freeze.
While Binance is once again under the spotlight for various investigations, it will be interesting to follow the outcome of these, in order to disentangle the true from the false and how this may affect the company’s public image.
