Benzinga - Crypto exchange Binance announced on Friday it will cease operations in the Netherlands, effective immediately, due to regulatory hurdles in the country.
According to a statement released by the company, no new accounts will be registered for residents in the Netherlands.
In addition, starting July 17, 2023, at 00:00 UTC, existing users residing in the Netherlands will only have the option to withdraw their assets from the Binance platform.
Any further transactions such as purchases, trades or deposits will be unavailable and the company has advised its users to withdraw assets from their accounts.
The exchange’s withdrawal from the Netherlands market comes after an extensive application process for registration as a virtual asset service provider (VASP) with the country's authorities.
Despite their efforts to comply with regulations, Binance has been unsuccessful in securing VASP registration in the Netherlands.
Binance stated, “Although we explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately this has not resulted in a VASP registration in the Netherlands at this time.”
Binance emphasized its commitment to adhering to regulatory standards and revealed it is already compliant with EU standards on anti-money laundering and counter-terrorist financing.
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The exchange holds registrations in EU countries including France, Italy, Spain, Poland, Sweden and Lithuania.
Binance also expressed disappointment in having to shut down operations in the Netherlands but assured that it will maintain transparent and constructive engagement with Dutch regulators.
This development comes amid Binance’s ongoing struggles with regulators.
Notably, the company has also faced scrutiny in the U.S. from the Securities and Exchange Commission (SEC).
The U.S. regulators have been stepping up their efforts to enforce compliance among cryptocurrency exchanges, and Binance (CRYPTO: BNB), and Coinbase Global Inc. (NASDAQ: COIN) have been part of the broader narrative.
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