Amidst regulatory pressures, the leading crypto exchange – Binance, is transferring Dutch clientele to competitor exchange Coinmerce, as it discontinues operations in the Netherlands. The realignment comes on the heels of Binance’s non-compliance with Dutch regulatory authorities in obtaining a virtual asset service recognition.
The handover is reportedly free of charge and firmly under regulatory oversight. “Our priority is to ensure an orderly transition,” expressed Jaap de Bruijn, chief executive officer of Coinmerce. This means that Dutch patrons, unable to avail Binance services, can now effortlessly transfer their digital assets to Coinmerce. To note, Coinmerce has been registered by the central bank to render crypto exchange and wallet services since 2020.
Behind the scenes, the transition emerges from Binance’s repeated run-ins with the Dutch central bank for serving clients without requisite authorisation. Indicatively, the past year has seen the exchange being penalized 3.3 million euros ($3.6 million) for non-adherence to regulatory norms. An extension of this saw Binance cease new customer on-boarding in the Netherlands last month, leaving existing clients hanging in a void, unable to deposit, trade or purchase beyond July 17.
Compounding its woes across the Atlantic too, Binance has also faced a considerable backlash from the U.S regulators, over claims of running an unlicensed securities exchange. The controversial allegations against the company and its CEO Changpeng “CZ” Zhao continue to unfold. Closer to home in Europe, their French office was recently raided around suspicions of “aggravated money laundering.”
While the exit of Binance and transition towards Coinmerce might be seen as an opportunity for the latter, it’s also a deeper revelation of the increasing complexities emerging in the global crypto landscape. As the convergence of technology, markets, and stringent regulations play out in real-time, major stakeholders are continually pushed to adapt or exit.
In the wake of such transitions, customers’ rights and interests must be safeguarded. It is yet to be seen whether the regulatory authorities’ drive for adherence paves way for a more secure and reliable crypto ecosystem or hinders innovation and accessibility in this fast-paced industry. As of now, Binance remains tight-lipped about recent developments.
Source: Coindesk
