Binance Exits Netherland as Government Denies VASP License
Summary: Binance has left the Netherlands due to the Dutch government's refusal to grant it a virtual asset service provider (VASP) license. Withdrawals will be restricted to Dutch nationals. Coinmerce, the largest exchange in the Netherlands, will now take over Binance users'. The exchange will keep in touch with the Dutch government and notify existing users of the changes.
The largest cryptocurrency exchange in the world, Binance, has left the Netherlands after the Dutch government refused to provide it a virtual asset service provider (VASP) license confirming that it satisfies anti-money laundering (AML) regulations.
Users Transition to Coinmerce Exchange
As on Tuesday, July 17th, the exchange announced in a press release that withdrawals will be restricted to Dutch nationals. By acquiring thousands of clients, assets, and offers from Binance Netherlands before it shuts down, Coinmerce will become the biggest exchange in the Netherlands.
Binance users may now freely and quickly move their crypto holdings to the popular cryptocurrency trading platform Coinmerce. The Dutch Central Bank will keep an eye on the migration of Binance users to Coinmerce.
Complying With MiCA Legistation
The European Union generally backs the efforts of cryptocurrency exchanges to prevent money laundering. Binance complies with all AML regulations in France, Italy, Spain, Poland, Sweden, and Lithuania. The firm had earlier filed fo deregistration in Cyprus. In order to conform to the EU’s new legislation on crypto-assets (MiCA).
Binance claims it has gone through the proper channels to register as a virtual asset service provider with the relevant regulator.
Moreover, Binance has applied to become a VASP in the Netherlands several times without success. Despite looking into several different possibilities, supplying Dutch people legally is currently not a possibility for the exchange.
It has been reported that the exchange will keep in touch with the Dutch government. Existing Dutch users will get an email outlining the changes that will affect their Binance accounts and any assets stored there.