The biggest cryptocurrency exchange in the world, Binance, has decided to leave the Dutch market after failing to get a license from the Dutch authorities to operate as a virtual asset services provider (VASP). Compliance with anti-money laundering (AML) regulations depends on having this license.
Starting on July 17, Dutch citizens will be limited to withdrawing money from the Binance platform and won’t be able to make any more purchases, trades, or deposits. Binance apologized for abandoning the Dutch market and urged current customers to withdraw funds from their accounts as soon as possible.
Although most of Europe has been open to cryptocurrency exchanges and their anti-money laundering initiatives, Binance’s applications for VASP registrations in the Netherlands did not have the anticipated impact. In several European nations, including France, Italy, Spain, Poland, Sweden, and Lithuania, the exchange has already attained AML compliance.
To concentrate on attaining complete compliance with the new European Union rules on crypto-assets (MiCA), Binance has declared its intention to leave Cyprus. The absence of a VASP registration forced Binance to stop operations in the Netherlands, despite considering alternate solutions to serve Dutch residents within legal bounds.
Binance has reaffirmed its commitment to carrying on working with regulatory authorities in the Netherlands. Existing customers who are Dutch residents will get comprehensive information through email about how it will affect their accounts and what they need to do.