In a surprising move, Binance is exiting the Netherlands due to challenges in registering as a virtual asset service provider in certain European Union (EU) countries. Despite its efforts to comply with regulators and cater to Dutch clients, the crypto exchange was unable to secure registration. Netherlands-based customers were informed via email that crypto deposits would be disabled starting next month, and they were also advised against sending any cryptocurrencies to previously saved addresses. The trade and staking of non-fungible tokens (NFTs) will be blocked from July 12.
From July 17, Dutch users will only have the option to withdraw assets from the Binance platform, while purchases, trades, and deposits will no longer be available. Open positions for various Binance products will also be closed. A spokesperson for Binance stated that no new users residing in the Netherlands would be accepted starting today, and the exchange will continue to work towards obtaining authorization to provide services in the country.
Binance’s Cyprus unit also applied to be removed from the country’s register of crypto asset service providers this week. A spokesperson explained, “We are working hard to prepare our business to be fully compliant with MiCA (Markets in Crypto Assets) when it is implemented in the next 18 months. To that end, we have made the decision to pull back efforts in Cyprus to focus on our efforts on fewer regulated entities in the EU, especially our larger registered markets where we already have a mature footprint, including France, Italy, and Spain.”
The EU Parliament’s approval of the MiCA regulation is expected to broaden banking services available to crypto firms. However, Binance withdrew from the Canadian market last month following the introduction of new stablecoin guidance and investor limits imposed on crypto exchanges.
Simultaneously, in the US, Binance, its CEO Changpeng Zhao, and affiliates face sweeping lawsuits from both the Commodities Futures Trading Commission and the Securities and Exchange Commission. This series of regulatory challenges raises questions about the future of Binance’s presence in various markets and the overall crypto industry’s preparedness for regulatory compliance. While some argue that it’s a necessary step for a maturing market, skeptics worry that excessive regulation could stifle innovation and limit its growth potential. Only time will tell how these challenges will impact the industry and where Binance’s focus will ultimately lie.
Source: Blockworks
