The Binance logo is displayed on a screen in San Anselmo, California, June 6, 2023.
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Cryptocurrency exchange Binance has announced its departure from the Netherlands as its application to register under the Dutch crypto authorization regime was declined.
In reference to a virtual asset service provider, Binance stated on Friday that it can no longer cater to Dutch clients “as we have been unable to register as a VASP with the Dutch regulator.”
The company did not disclose the reason behind its failure to obtain a license from regulators.
Effective immediately, Binance will no longer accept new users onto its platform. Starting from July 17, Binance will halt token purchases, trading, and deposits, while maintaining the ability to withdraw funds.
Binance strongly advised users to withdraw their assets from their accounts.
The Dutch central bank, responsible for authorizing new virtual asset service providers, did not provide immediate comment.
Under the current regulatory framework, Binance can only secure approval to operate in an EU country by registering under its anti-money laundering rules.
So far, Binance has obtained such approvals in France, Italy, Spain, Poland, Sweden, and Lithuania. However, this will change once the EU approves its Markets in Crypto Assets (MiCA) regulation.
MiCA aims to standardize crypto regulation across the European Union and safeguard consumers from fraudulent activities, particularly in the aftermath of FTX’s shocking collapse in November.
Upon the enforcement of MiCA, crypto firms registered in one EU country will be allowed to offer their services across other member states.
Binance emphasized its commitment to working collaboratively with regulators worldwide and focusing on becoming fully MiCA compliant.
“Dutch resident users will be sent an email containing comprehensive information regarding the implications for their accounts and existing assets on the Binance platform, along with the necessary steps to be taken,” stated a Binance spokesperson to CNBC.
“While Binance regrets the need for this decision, it will continue to engage with Dutch regulators in a productive and transparent manner.”
This setback for the crypto giant comes amidst a turbulent period for the broader cryptocurrency industry. Last week, the U.S. Securities and Exchange Commission filed a lawsuit against Binance and CEO Changpeng Zhao, accusing them of engaging in the unregistered offer and sale of securities and commingling investor funds with their own.
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