Key points to remember
- Binance will leave the Netherlands as it failed to obtain a VASP after failing to comply with AML standards.
- It maintained its VASP in other European Union countries after MiCA passed.
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Binance, the world’s leading cryptocurrency exchange, is set to pull out of the Netherlands after failing to get the necessary approval from the Dutch financial regulator. The exchange was unable to obtain a Virtual Asset Service Provider (VASP) license, which confirms compliance with standards such as anti-money laundering (AML), anti- financing of terrorism, knowing your customer, etc. according to a Binance instruction:
“While Binance has explored many avenues to serve Dutch residents in accordance with local regulations, we regret to report that we have not obtained VASP registration in the Netherlands at this stage.”
The exchange’s retirement will begin on July 17, when Dutch users will be limited only to withdrawing funds from their accounts. Effective immediately, new customers based in the Netherlands will not be able to sign up for Binance Netherlands.
Although this news has succeeded in ensuring AML compliance in several EU countries including France, Italy, Spain, Poland, Sweden, and Lithuania, especially regarding their AML protocols. However, Binance has announced its intention to exit Cyprus in a bid to fully comply with new European Union regulations on crypto-asset markets (MiCA).
These departures follow the exchange exit Canada, limiting services in Australia and sued by the U.S. Securities and Exchange Commission earlier in June.
While the exchange will continue to engage with Dutch authorities and restructure its compliance efforts, according to the announcement, Binance maintains that it will continue to pursue registration as a VASP in accordance with the requirements of the Dutch regulator. For existing Dutch users, detailed emails should be sent, outlining the implications of this development on their accounts and providing a roadmap for all necessary actions.