Binance Exits Dutch Market Following Unsuccessful Bid for VASP License

Binance crypto exchange has decided to withdraw from the Dutch market following an unsuccessful attempt to obtain a virtual asset service provider (VASP) license from the Dutch regulator.

We regret to announce that Binance is leaving the Dutch market as we have been unable to register as a VASP with the Dutch regulator.

We continue to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business…

— Binance (@binance) June 16, 2023

The platform is no longer accepting new users to register from the Netherlands.

“Existing Dutch resident users will only be able to withdraw assets from the Binance platform. No further purchases, trades or deposits will be possible. We encourage users to take appropriate action by withdrawing assets from their Binance accounts,” the exchange said in a notice on its website.

Binance is Under Pressure

This is not the first hardship the exchange is facing in recent months.

While Binance has been trying to work out the best way through which they could continue to service Dutch residents in compliance with Dutch regulations, unfortunately, the company was unable to get a VASP registration in the country.

In addition, the company was already forced to close its services in a number of other countries including, Nigeria, Canda, Cyprus and Australia.

Moreover, the company has found itself in hot water with the United States Securities and Exchange Commission (SEC) at the start of the month which has filed against the exchange as well as its CEO, Changpeng Zhao, and two other parties 13 charges on security law violations.

Will New Crypto EU Regulations Affect Binance Further?

The European Union is also aiming to bring cryptocurrency assets, issuers and exchanges under a harsher regulatory framework through the implementation of the Markets in Cryptoassets (MiCA) Regulation which was adopted on 16 May 2023.

While Binance has noted that it “is already compliant with EU standards on the prevention of money laundering and financing of terrorism” it could face more hardships in the months to come.

Binance is registered and operating in a number of EU countries including France, Italy, Spain, Poland, Sweden and Lithuania.

However, the exchange’s French unit found itself under investigation for allegedly providing digital asset services in an “illegal” manner and engaging in “acts of aggravated money laundering” according to reports by CoinDesk.

How is BNB reacting?

Despite the negative news today, the crypto exchange’s native token, BNB, is up by about 4.5% in the past 24 hours, according to data provided by CoinMarketCap.

The bullish run is not as encouraging to investors, as the token is down by about 20% since the start of the month, falling to $245 as of 17 June from around $304 on 1 June.