Crypto exchange withdraws from the Netherlands

While the US branch of the world’s largest Bitcoin exchange, Binance, is under constant fire, the crisis is now reaching Europe. As the company said on its website on the morning of June 16 communicatesBinance will cease operations in the Netherlands.

The press release states:

We regret to inform you that Binance is exiting the Dutch market. Effective immediately, no new users residing in the Netherlands will be accepted.

Already registered users can now only withdraw assets, but no longer transfer them to the platform. The Exchange will also stop trading with immediate effect.

Missing license

The background is a missing license as a Virtual Asset Service Provider (VASP) in the Netherlands. According to its own statements, the Dutch financial supervisory authority never granted Binance the necessary authorization despite “an extensive application process”.

However, the world’s largest crypto exchange will probably not withdraw entirely from Europe. After all, the group has already been able to get hold of one of the coveted crypto licenses in France, Italy, Spain, Poland, Sweden and Lithuania. The business there is therefore fully regulated and meets all legal requirements such as anti-money laundering guidelines and anti-terrorist financing requirements.

The company also signaled its support for the MiCA regulatory framework that was recently adopted.

Binance: fines for missing licenses

As early as April 2022, the central bank of the Netherlands (De Nederlandsche Bank) imposed fine in the amount of 3.325 million euros to Binance. The reason was the lack of a license.

After all, the penalty was reduced by five percent at the time, since Binance subsequently applied for the necessary license.

The company was recently caught in the SEC’s line of fire in the United States. The US Securities and Exchange Commission had accused the company’s US division of embezzlement and charged the Exchange.

Only a short time later, Binance.US almost completely went out of business; USD deposits are no longer possible.