After failing to secure a virtual asset service provider (VASP) license from the Dutch regulator, the Binance cryptocurrency exchange has made the decision to exit the Dutch market.
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.
— Binance (@binance) June 16, 2023
We continue to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business…
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
In recent months, the exchange has encountered additional challenges.
Although the company has been working to find a way to continue serving Dutch citizens in accordance with Dutch law, Binance was unable to register as a VASP in the nation.
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?
With the adoption of the Markets in Cryptoassets (MiCA) Regulation on May 16, 2023, the European Union also hopes to impose stricter regulations on cryptocurrency assets, issuers, and exchanges.
Binance may encounter additional difficulties in the months ahead, despite stating that it “is already compliant with EU standards on the prevention of money laundering and financing of terrorism.”
France, Italy, Spain, Poland, Sweden, and Lithuania are among the EU nations where Binance is registered and conducts business.
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 today’s bad news, CoinMarketCap data shows that BNB, the native token of the cryptocurrency exchange, has increased by roughly 4.5% over the last day.
Investors are not encouraged by the bullish run because the token has lost roughly 20% since the beginning of the month, dropping from about $304 on June 1 to $245 on June 17.
