The Dutch authorities did not believe that Binance was worthy of a VASP license.
The Netherlands market will no longer witness the operations of Binance, the international crypto exchange, as it withdraws following an unsuccessful attempt to obtain a virtual asset service provider (VASP) license.
Effective immediately, the cessation of Binance's services implies that prospective customers in the Netherlands couldn't set up new accounts on the crypto exchange.
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Starting July 17th, existing clients from the Netherlands will find their activities restricted to asset withdrawal from the Binance platform. Buying, trading, or depositing will no longer be available from that point forward.
Binance expressed its relentless efforts to seek various alternatives to continue servicing Dutch citizens while maintaining compliance with local regulations. However, none of these paths led to the attainment of VASP registration.
As a part of this transition, the crypto exchange is dispatching emails to its Dutch clientele, outlining a detailed roadmap for the necessary actions they should undertake with their Binance accounts.
It is worth noting that over a year ago, Binance received a hefty administrative fine exceeding $3 million for operating in the Netherlands without the requisite licensing and registration.
The crypto exchange's exit from the Netherlands unfolded just days after reports of its planned departure from Cyprus came to light. On June 14th, Binance Cyprus was listed as "under examination for application for deregistration" on the Cyprus Securities and Exchange Commission's website.
Despite these setbacks, Binance reiterated its commitment to meeting European Union standards, particularly concerning the prevention of money laundering and terrorist financing.
It is worth remembering that on June 5th, Binance, Binance.US, and founder Changpeng Zhao were sued by US Securities and Exchange Commission over alleged securities law violations.
Binance's withdrawal from the Netherlands underscores the complex regulatory landscape for crypto exchanges, emphasizing the need for adherence to local regulations and the potential fallout when they are not met.
