Binance is continuing its staggered retreat from another market.
According to a Tweet from today, Binance is exiting the Netherlands market as they have been “unable to register as a VASP with the Dutch regulator.”
A VASP is a virtual asset service provider, and the term used for crypto exchanges by the global organization FATF or the Financial Action Task Force.
We regret to announce that Binance is leaving the Dutch market as we have been unable to register as a VASP with the Dutch regulator.
We continue to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business…
— Binance (@binance) June 16, 2023
Binance posted the following statement on its website:
“With immediate effect, no new users residing in the Netherlands will be accepted. Starting from 2023-07-17 at 00:00 UTC (2023-07-17 at 02:00 UTC+2), existing Dutch resident users will only be able to withdraw assets from the Binance platform. No further purchases, trades or deposits will be possible. We encourage users to take appropriate action by withdrawing assets from their Binance accounts.
Binance has been in a comprehensive registration application process as a virtual asset service provider (VASP) with the Dutch regulator. Although we explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately, this has not resulted in a VASP registration in the Netherlands at this time. Binance will continue striving to obtain authorizations to provide our products and services to users in the Netherlands.
Binance is already compliant with EU standards on the prevention of money laundering and financing of terrorism as evidenced by its registrations in other EU countries, including France, Italy, Spain, Poland, Sweden and Lithuania. Binance continues to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business ready to be fully compliant with the new EU rules on crypto-assets (MiCAR).
Existing Dutch resident users are being sent an email with comprehensive information about what this means for their accounts and any assets they currently have on the Binance platform, alongside any steps they will need to take. While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators.”
While Binance’s strategy to pursue MiCA qualification makes a lot of sense, it is not a foregone conclusion that this will fix the company’s woes.
A recent report by Reuters claims that France is investigating Binance for allegations of money laundering. Apparently, there is a “preliminary investigation” pertaining to “the unauthorised practice of the profession of virtual assets service provider” and “aggravated money-laundering.” At the same time, Binance founder and CEO Changpeng Zhao Tweeted that a visit by regulators was not news and just part of doing business in the crypto-friendly country.