Binance, the largest exchange by daily trading volume, has decided to say goodbye to the Dutch market. The move follows Binance’s failure to obtain registration as a Virtual Asset Service Provider (VASP) in the Netherlands. This news comes as the company faces regulatory challenges in multiple jurisdictions.
Binance says goodbye to the Netherlands
In recent times, Binance, the giant of the exchanges in the world, has found itself facing regulatory challenges in several jurisdictions.
First in the United States, where the Securities and Exchange Commission (SEC) is waging a crusade against cryptos. Then in Canada, where the exchange weighed anchor last month, due to new guidelines that made operations in this country unsustainable.
Lo and behold, today Binance officially announcement its withdrawal from the Dutch market, causing shock waves among its users in the Netherlands.
The company unfortunately failed to obtain the VASP registration required by regulators in the Netherlands. In a blog post, Binance made it known that Dutch users already on the Exchange will only be able to make withdrawals from July 17, 2023. While new registrations will no longer be admitted.
“We regret to announce that Binance is leaving the Dutch market. With immediate effect, no new users residing in the Netherlands will be accepted. As of 07/17/2023 00:00 UTC (07/17/2023 02:00 UTC+2), existing Dutch resident users will only be able to withdraw assets from the Binance platform. No other purchases, exchanges or deposits will be possible. We encourage users to take appropriate action when withdrawing assets from their Binance accounts. »
The saga of regulatory challenges continues!
Binance finds itself stuck in a downward spiral of regulatory challenges. The withdrawal from the Netherlands market is part of a broader context of departures from The Exchange from certain markets. And even Nigeria has decided to curb the activities of Binance on its territory.
But that’s not all ! the cryptod exchange giant is also facing regulatory pressures from the US side. The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance for alleged violations of securities laws.
Separately, the SEC has also requested a temporary restraining order to freeze the assets of Binance.US.
These legal developments in the United States have added additional pressure on Binance and led to strategic adjustments by the platform in several international markets. And as if that were not enough, Binance now finds itself in the crosshairs of a judicial investigation in France.
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