Binance Exits Dutch Market after Failed VASP License Bid

Binance has terminated its services in the Netherlands, exiting the Dutch market following an unsuccessful attempt to obtain a virtual asset service provider (VASP) license.

The immediate cessation of services is effective, and no new customers from the Netherlands can establish accounts with the cryptocurrency exchange.

Existing Dutch consumers will only be able to withdraw assets from the Binance platform beginning on July 17, and no new purchases, trades, or deposits will be permitted.

Binance asserted that, following local regulations, it investigated a variety of alternative avenues to serve Dutch residents. However, none of these avenues led to VASP registration.

The cryptocurrency exchange is presently sending emails to its Dutch customers with detailed instructions on how to proceed with their Binance accounts.

In April 2022, the cryptocurrency exchange was fined over $3 million for operating in the country without the requisite license and registration.

The Dutch central bank claimed at the time that Binance had a sizable customer base in the country and a significant daily trading volume in the billions of dollars, thus justifying the hefty fine.

The cryptocurrency exchange emphasized in its announcement that it complies with European Union anti-money laundering and countering the financing of terrorism regulations.

To demonstrate EU compliance, Binance cited its registration in EU nations, including France, Italy, Spain, Poland, Sweden, and Lithuania.

Binane’s withdrawal from the Dutch market coincides with the emergence of its exit plans from Cyprus.

The Cyprus Securities and Exchange Commission placed Binance Cyprus “under examination for application for deregistration” on its website on June 14.

Binance said at the time that it is focused on achieving full compliance with the new Markets in Crypto-Assets (MiCA) regulations within the next 18 months and is therefore focused on the larger European Union market.