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The Binance logo is displayed on a screen in San Anselmo, California, June 6, 2023.
Justin Sullivan | Getty Images
Cryptocurrency exchange Binance has said it is leaving the Netherlands after the company’s application to register under the Dutch crypto licensing regime was rejected.
Referring to the virtual asset service provider, Binance said on Friday that it can no longer serve Dutch clients “because we were unable to register as a VASP with the Dutch regulator.”
The company has not given a reason why it cannot obtain a license from the regulators.
As of Friday, no new Binance users will be accepted on the platform. As of July 17, Binance said that it will stop allowing users to buy tokens, trade or deposit, although its withdrawal functionality is still active.
Binance recommended that users withdraw their assets from their accounts.
The Dutch central bank, which is responsible for authorizing new virtual asset service providers, was not immediately available for comment.
Under the current regulatory regime, Binance can only obtain approval to operate in an EU country by registering under the rules to prevent money laundering.
To date, the company has received such approvals in France, Italy, Spain, Poland, Sweden and Lithuania. This is set to change once the European Union agrees to regulate its Markets in Crypto Assets (MiCA).
MiCA aims to harmonize crypto regulation across the block and prevent bad actors from harming consumers, especially in the wake of FTX’s sudden bankruptcy in November.
Once the MiCA goes into effect, crypto companies registered in one EU country will be able to use this to offer their services across other member states.
Binance said it remains “committed to working collaboratively with regulators around the world and is placing an additional focus on preparing our business to be fully MiCA-compliant.”
“Existing Netherlands-based users are sent an email with comprehensive information about what this means for their accounts and any assets they currently hold on the Binance platform, along with any steps they will need to take,” a Binance spokesperson told CNBC.
“While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators.”
The latest blow to the crypto giant after a tumultuous few months for the broader cryptocurrency industry. Last week, the US Securities and Exchange Commission sued Binance and CEO Changpeng Zhao, alleging they engaged in unregistered offering and selling of securities and mixing investor funds with their own funds.
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