Binance to exit the Netherlands after failing to secure a VASP licence
Binance, the world’s largest crypto exchange, is leaving the Dutch market after failing to obtain a virtual asset service provider (VASP) licence.
Starting from July 17th, users from the Netherlands will only be able to withdraw their funds from the platform, while trading and depositing will no longer be possible. New user registrations will also be unavailable. An email has been sent to all Dutch clients informing them about their accounts and assets, as well as outlining the available withdrawal options.
The lack of registration as a digital asset service provider could result in significant fines for the company. Last year, the country’s central bank fined Binance over €3 million for allegedly providing illegal cryptocurrency services.
Binance expressed regret that despite its efforts, the company had to leave the country’s market. The reasons for the licenсe refusal have not been disclosed. Binance also noted that it had explored many avenues to service Dutch residents in compliance with the country’s legislation, but this did not allow it to obtain a VASP registration. However, the exchange will continue to engage with the regulator to obtain a licenсe.
Binance already has licenсes to operate in Sweden, France, Poland, Italy, Spain, and Lithuania. The exchange recently announced that it plans to withdraw from Cyprus in order to better prepare its business for full compliance with the new European Union rules on crypto-assets (MiCA). Last month, the company announced the exit from Canada due to the introduction of stricter rules for crypto platforms.