Why Binance Is Leaving The Netherlands

Binance, the world’s largest cryptocurrency exchange, has announced that it is leaving the Netherlands after failing to register as a virtual asset service provider with the Dutch regulator. This is the latest setback for Binance, which has faced increasing scrutiny and pressure from regulators across the globe in the recent months.

According to a statement on its website, Binance said that starting from July 17, existing Dutch users will only be able to withdraw assets from the Binance platform. No further purchases, trades or deposits will be possible. Binance also said that no new users residing in the Netherlands will be accepted.

Binance’s decision to exit the Netherlands comes after the Dutch Central Bank (DNB) fined Binance for offering crypto services in the country without the required registration. The DNB ruled in May 2020 that any company seeking to offer crypto services in the Netherlands must comply with the country’s laws against money laundering and terrorism financing.

Binance said that it tried to obtain registration as a virtual asset service provider “although we explored many alternative avenues to service Dutch residents in compliance with Dutch regulations.” Binance also vowed to continue trying to secure authorizations to operate in the Netherlands.