June 19, 2023: Cryptocurrency trade Binance said it would leave the Netherlands after rejecting the company’s application to register under the Dutch crypto authorization regime.
Referring to a virtual asset service provider, Binance said it could no longer serve Dutch clients “as we have been unable to register as a VASP with the Dutch regulator.”
The company should have given a reason for why it was unable to receive a license from regulators.
Starting Friday, no further Binance users will be carried onto the platform. From July 17, Binance said it would cease allowing users to buy tokens, trade, or make deposits, although its withdrawal function remains active.
Binance recommended that users withdraw their assets from their accounts.
The Dutch central bank, responsible for authorizing new virtual asset services providers, was not immediately available for comment.
Under the current regulatory regime, Binance can only get approval to operate in an EU country by registering under its money laundering prevention rules.
The firm has received such approvals in France, Italy, Spain, Poland, Sweden, and Lithuania. This is set to change once the EU approves its Markets in Crypto Assets regulation.
MiCA aims to harmonize crypto regulation across the bloc and to prevent bad players from harming consumers, particularly in the wake of the shocking bankruptcy of FTX in November.
Once MiCA comes into force, crypto firms registered in one EU country can use that to offer services across other member states.
Binance remains “committed to operating collaboratively with regulators worldwide and is additionally focused on getting our business ready to be fully MiCA compliant.”
“Existing Dutch resident users are being sent an email with comprehensive information about what this means for their accounts and any assets they currently have on the Binance platform, alongside any steps they need to take,” a Binance spokesperson said.
“While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators.”