The cryptocurrency exchange attempted to obtain a Virtual Asset Service Provider (VASP) license from Dutch regulators but was unsuccessful.
Binance, the world’s largest cryptocurrency exchange, is leaving the Netherlands after failing to convince Dutch regulators to issue a virtual asset service provider (VASP) license that would prove it complies with anti-money laundering (AML) guidelines.
As of July 17, Dutch residents will only be able to withdraw funds from the platform, according to a statement from the exchange.
“We regret to announce that Binance will be withdrawing from the Dutch market,” Binance said on its website. “Unfortunately, this means that as of today, new users residing in the Netherlands will no longer be accepted. Starting July 17, 2023, existing Dutch resident users will only be able to withdraw assets from the Binance platform. This will not be possible further purchases, trades or deposits. We encourage these users to take appropriate action and withdraw assets from their accounts."
Europe generally accepts cryptocurrency exchanges and their anti-money laundering efforts. Binance already complies with anti-money laundering standards in France, Italy, Spain, Poland, Sweden, and Lithuania. Two days ago, the exchange said it planned to leave Cyprus to focus on fully complying with new EU regulations on crypto-assets (MiCA).
Binance said that as a virtual asset service provider, it has been conducting comprehensive registration applications with regulators. “While Binance has explored a number of alternative avenues to provide Dutch residents with services that are compliant with Dutch regulations, unfortunately this has not resulted in VASP registration in the Netherlands at this time.”
The exchange said it would continue to engage with Dutch regulators.
Existing Dutch resident users will receive an email with comprehensive information on what this means for their accounts and any assets they currently own on the Binance platform, as well as any steps they need to take.