Binance Bids Farewell to Netherlands, to Deregister Cyprus Unit
The world's largest cryptocurrency exchange, Binance, has decided to withdraw from the Netherlands and Cyprus. The decision comes as Binance faced challenges obtaining registration as a crypto service provider in the Dutch market. Simultaneously, the exchange's Cyprus unit sought deregistration from the country's register of digital asset service providers.
Binance Sets Sights on EU Expansion
Despite its efforts to comply with local regulations, Binance has made the tough decision to exit the Dutch market. On Friday, the company revealed that its attempts to work in the country in compliance with local regulations have not resulted in registration as a virtual asset service provider (VASP).
Starting from July 17, existing customers will only be able to withdraw their assets, while new users residing in the Netherlands will no longer be accepted. Binance said in an announcement, that deposits, purchases, and trades will not be possible. “With immediate effect, no new users residing in the Netherlands will be accepted.”
The company remains committed to pursuing the necessary authorizations to serve Dutch users in the future, while already meeting requirements in other EU member states and preparing to be fully compliant with the bloc’s recently adopted Markets in Crypto Assets (MiCA) rules.
The exchange also stated it will “engage productively and transparently with Dutch regulators” in the future. Reuters has reported that the exchange has been previously warned by De Nederlandsche Bank, the Dutch monetary authority, that it’s operating without registration and was fined in January.
Strategic Focus on EU Jurisdictions
Binance's decision is in line with its strategic focus on EU jurisdictions and aims to prioritize its operations in countries like France, Italy, and Spain, which are aligned with the recently adopted Markets in Crypto Assets (MiCA) rules.
This announcement comes at a time when Binance has been facing increased regulatory scrutiny worldwide. The recent legal action taken by the US Securities and Exchange Commission (SEC) against Binance and its founder Changpeng Zhao for violating securities laws in the United States, highlights the challenges faced by the exchange. Binance has also recently revealed plans to exit the Canadian and Australian markets.
Binance Cyprus Ltd., the exchange's Cypriot entity, has taken steps to be removed from the country's register of crypto asset service providers. This move is part of Binance's strategic realignment as it prepares for the implementation of the EU's new crypto regulations within the next 18 months. “We are working hard to prepare our business to be fully compliant with MiCA,” the company representative stated.
The departure of Binance from the Netherlands and Cyprus raises questions about the exchange's plans in other European Union markets.
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