Binance Failed To Register In The Netherlands But The Details Be Confidential

Key Points:

• Binance has announced its withdrawal from the Netherlands market because of its inability to register with the regulatory authorities as a VASP.
• Due to supervisory regulatory constraints, the central bank was unable to provide more information concerning the exchange’s registration.
• Many exchanges continue to operate in the Netherlands without being registered.

Binance, the world’s biggest cryptocurrency exchange, has announced its withdrawal from the Dutch market owing to its failure to register with regulatory authorities as a virtual asset service provider (VASP). According to reports, the crypto exchange may have been compelled to relocate.

Because of the secrecy constraints of the Dutch central bank’s supervisory legislation, the facts of Binance’s unsuccessful attempts to file for a VASP license in the Netherlands remain unknown.

Binance said on June 16 that it would cease operations in the Netherlands with immediate effect after failing to get approval from De Nederlandse Bank (DNB). Dutch consumers will only be allowed to withdraw assets from the site beginning July 17, while trading and deposits were halted on the day of the announcement.

The company stated it went through an extensive registration application procedure to secure a VASP license in the Netherlands and looked into other channels to serve Dutch people there. According to the exchange, it will continue its efforts to get authorization to offer its services and goods in the nation.

Tobias Oudejans, DNB press officer for supervision, fintech, cryptocurrencies, resolution, and payment systems, told Cointelegraph that the central bank was unable to release more information on Binance’s registration owing to regulatory requirements:

“Because of confidentiality as demanded by our supervisory laws, we cannot elaborate on anything concerning our supervision on individual institutions or the possible licensing trajectories they may be in.”

The DNB, according to Oudejans, wished to emphasize that their apparent quiet on this particular supervisory decision and comparable situations could be incorrectly ascribed to a refusal to comment, but was mandated by Dutch rules.

It is vital to remember that some exchanges continue to operate in the Netherlands without being registered. As of today, Coinbase Global, the largest exchange in the United States, has obtained a VASP license in the nation. Meanwhile, Binance has decided to exit the market. It is suspected that the Netherlands’ Central Bank threatened the exchange with a larger punishment than previously.

According to sources, DNB penalized Binance $3.3 million for operating without a license. Binance would have been one of the 35 VASPs registered with the DNB. Coinbase Custody International, Coinbase Europe, eToro (Europe), BitPay, and Bitstamp are among those included.

According to Oudejans, VASP registration requirements in the Netherlands are consistent with equivalent standards for other financial institutions supervised by the DNB. They are based on the Anti-Money Laundering and Counter-Terrorist Funding Act of the Netherlands.

The introduction of the European Union’s newly issued Markets in Crypto-Assets law (MiCA) may present Binance with an alternate way to operate in the Netherlands by 2024. According to Oudejans, the worldwide exchange might acquire access to the Dutch market provided it meets the conditions in other EU member states. Binance has previously said that it is stepping up its efforts to fully comply with the new EU laws outlined in MiCA.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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