UpdatesJun 17, 2023

Binance leaves another European country due to regulatory difficulties

The world's largest digital currency platform withdraws from the Netherlands.

Recently, the popular cryptocurrency exchange Binance informed the public that it was closing its operations in Cyprus. Based on the latest statement of representatives of this platform, it appears that it will leave another country located in Europe. This time it's about the Netherlands. This decision was made by the authorities of the global giant in cryptocurrency trading due to significant regulatory obstacles.

Binance exchange leaves the Netherlands

The world's most popular digital currency platform and at the same time the entity with the largest daily trading volume announced on Friday, June 16 this year, that it was saying goodbye to another European country due to insurmountable regulatory difficulties. This time the platform is withdrawing from the Netherlands.

The regulatory difficulties mentioned above relate to the fact that the Dutch regulator refused to license the Binance exchange as a provider of digital currencies in the country. The behavior of the Dutch regulator led the popular cryptocurrency platform to decide to leave this Western European country.

Users from the Netherlands have been asked by the company authorities to withdraw their funds as soon as possible. Binance has terminated its services with immediate effect. It is worth noting that no new user from this country is able to open an account on the Binance exchange anymore. As of today, the authorities of this platform have closed the possibility of depositing new funds as well as making all kinds of financial transactions for the current group of investors who are citizens of the Netherlands.

Binance representatives added that they have explored many alternative methods to maintain their ability to serve customers from the Netherlands, but none of them opened up the possibility of obtaining a license as a digital currency service provider.

Binance stated that it is currently sending emails to its customers in the Netherlands with any information on the specific steps they should take on their accounts. It is worth recalling here that at the stage of April 2022, Binance was subject to a large administrative fine of over $3 million for operating in the area of ​​offering financial services in the Netherlands without the required license and registration. The Dutch central bank explained its decision at the time that the fine imposed on the exchange is so high because the platform has an exceptionally large number of customers in the country, as well as a daily trading volume of up to billions of dollars.

Binance determined to comply with the MiCA regulation

The cryptocurrency exchange, headed by Changpeng Zhao, recently stated that it is currently focusing on full compliance with the new regulations in the area of crypto asset markets (MiCA) enacted by the European Union.

In conclusion, it is worth adding that this exchange and several of its competitors have received a lawsuit from the American financial regulator, which is the SEC. In the case of the Binance platform, it concerned not only offering American customers unregistered securities in the form of digital currencies, but also enabling money laundering or mixing own funds with those belonging to customers of the cryptocurrency exchange.