Binance Withdraws from Netherlands After Failing to Secure Regulatory License

Binance, the world’s leading cryptocurrency exchange company, has announced its departure from the Netherlands following its failure to convince the Dutch regulator to issue a virtual asset service provider (VASP) license.

Effective July 17, residents of the Netherlands will only have the option to withdraw their funds from the Binance platform, as stated in an official release by the exchange.

The statement released on its website reads “We regret to announce that Binance is leaving the Dutch market.”

“This unfortunately means that no new users residing in the Netherlands will be accepted as of today. Starting from July 17, 2023, existing Dutch resident users will only be able to withdraw their assets from the Binance platform. No further purchases, trades, or deposits will be possible. We encourage those users to take appropriate action by withdrawing assets from their accounts.”

Despite Europe’s general openness towards crypto exchanges and their efforts in combating money laundering, Binance failed to attain AML compliance in the Netherlands.

However, the exchange currently complies with AML regulations in countries like France, Italy, Spain, Poland, Sweden, and Lithuania. Just two days ago, Binance had also revealed plans to exit Cyprus to prioritize full compliance with the new European Union rules on crypto-assets (MiCA).

Binance stated that it had been actively engaged in the registration application process as a virtual asset service provider with the Dutch regulator.

“Although Binance explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately, this has not resulted in a VASP registration in the Netherlands at this time.”

The exchange pledged to continue its engagement with Dutch regulators, indicating its willingness to work towards a resolution.

Existing users who are residents of the Netherlands will receive an email containing comprehensive information about the implications for their accounts and the steps they need to take regarding any assets they hold on the Binance platform.