Jamal Al-Farouq Binance Withdraws from Netherlands and Seeks Deregistration of Cyprus Unit
Binance, the largest cryptocurrency exchange worldwide, has announced its decision to exit the Dutch market due to its failure to obtain registration as a crypto service provider. Furthermore, the company’s entity in Cyprus has applied for removal from the country’s register of digital asset service providers.
Binance’s Departure from Netherlands and Cyprus to Prioritize Other EU Jurisdictions
In a recent development, Binance, the leading global crypto exchange, has chosen to withdraw from the Netherlands. The company disclosed on Friday that its efforts to operate within the country’s regulatory framework and obtain registration as a virtual asset service provider (VASP) did not yield successful results.
Effective from July 17, existing customers will only be able to withdraw their assets, as Binance clarified in an announcement, while deposits, purchases, and trades will no longer be possible. The platform specifically emphasized that it will not accept new users residing in the Netherlands with immediate effect.
Binance has assured its commitment to continue striving for authorizations that would allow the provision of its products and services to users in the Netherlands. Additionally, the company highlighted its compliance with the requirements of other European Union (EU) member states and its preparation to fully adhere to the recently adopted regulations on Markets in Crypto Assets (MiCA) within the bloc.
Regarding future interactions with Dutch regulators, Binance expressed its intention to engage in productive and transparent discussions. It should be noted that the exchange had previously received a warning from the Dutch monetary authority, De Nederlandsche Bank, for operating without registration, and had been fined in January, according to Reuters.
Binance, known for its significant trading volume, has faced increasing regulatory scrutiny. In recent developments, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, its founder Changpeng Zhao, and its American subsidiary, alleging violations of securities laws in the United States. Binance has also announced plans to exit the Canadian and Australian markets.
Recent reports have also revealed Binance Cyprus Ltd., the exchange’s Cypriot entity, has requested removal from the country’s register of crypto asset service providers. This information is based on the entity’s listing on the website of the local securities regulator. Binance Cyprus Ltd. was registered in October 2022.
Explaining this move, a spokesperson from Binance mentioned the company’s focus on its other regulated units in EU countries, such as France, Italy, and Spain, in preparation for the implementation of the Union’s new crypto regulations in the coming 18 months. The company representative stated, “We are working hard to prepare our business to be fully compliant with MiCA.”
Please share your thoughts in the comments section below regarding whether you believe Binance will withdraw from other markets in the European Union.
Frequently Asked Questions (FAQs) about crypto exchange
Why is Binance withdrawing from the Netherlands and seeking to deregister its Cyprus unit?
Binance is withdrawing from the Netherlands because it has been unable to obtain registration as a crypto service provider, and as a result, it is unable to comply with local regulations. The decision to seek deregistration of its Cyprus unit is part of Binance’s strategic focus on other EU jurisdictions and preparations to fully comply with the Union’s new crypto regulations, known as Markets in Crypto Assets (MiCA).
More about crypto exchange
- Binance
- Markets in Crypto Assets (MiCA)
- U.S. Securities and Exchange Commission (SEC)
- De Nederlandsche Bank
3 comments
binance getting fined and sued left and right. it’s getting real messy for them. they better get their act together or it could be bad news for the whole crypto community. fingers crossed they can bounce back!
binance leaving the netherlands? that’s a bummer. i wonder why they can’t get registered. regulations can be such a hassle sometimes. hope they sort it out soon!
so binance is like, pulling out of cyprus too? that’s cray. they must be having some major issues with regulations. wonder where they’re gonna focus now. it’s all so unpredictable in the crypto world!