A change of course is on the horizon for Gemini, a New York-headquartered crypto exchange, as it plans to cease its operations in the Netherlands. This move seemingly mirrors the recent departure of Binance, another titan in the world of crypto, from the same market. According to Gemini, the primary cause behind this suspension is the inability to meet the regulatory requirements of De Nederlandsche Bank (DNB).
The termination of activity was announced to Dutch users on September 26, with a request to withdraw assets or transfer them to a different wallet address. Come November 17, the exchange’s function there will be put on hold. There is, however, a silver lining to this development. Gemini has expressed its intention to return to the Dutch market, once it can align its business operations with the new crypto-asset rules devised under the Markets in Crypto-Assets Regulation (MiCA).
The impact of Gemini’s departure is slightly softened by its recommendation to its users. It suggests transferring funds to Bitvavo, a local crypto exchange, which operates in compliance with DNB’s regulations. This Amsterdam-based platform is a member of the Dutch Association of Bitcoin Companies and has been operating since 2018.
While the intimation of Gemini’s operational cessation clearly reflects the stringent regulatory landscape, it is not alone in facing such hurdles in the Netherlands. Another globally recognized crypto exchange, Binance, had to discontinue its services due to its failure to get DNB’s nod of approval. Yet, on a different note, DNB currently has 37 virtual asset providers on its registered list, including crypto giants like eToro, Coinbase, Crypto.com and BitPay.
A scenario where two major cryptos had to halt their operations reflects a tension in the balance between regulation and innovation. While rules are necessary to protect investors and maintain a level of stability, the ability of firms to meet them bears down heavily on the growth of the crypto-currency market. Even as Gemini exits stage left, the hope remains that other exchanges will be able to navigate these regulatory waters and continue their operations in the Netherlands.
Source: Cointelegraph
