Binance announced that, due to their inability to become a registered virtual asset service provider with the Dutch regulator, they can no longer offer their services to clients in the Netherlands. Friday will be the cutoff for new Binance users, and trading, buying tokens, and making deposits will be stopped as of July 17th. The company stated that they are devoted to working together with international regulators and are dedicated to meeting the requirements of the incoming EU crypto regulations.
Binance, an exchange of cryptocurrencies, announced it will no longer serve Dutch customers after its application for registration under the Dutch crypto authorization regime was refused. The company failed to mention the reasons for why it did not obtain the license. As of July 17, the platform will not accept new users, and current ones won't be able to purchase tokens, trade, or make deposits. It is suggested that users withdraw their assets because the withdrawal function remains active.
The Dutch central bank, responsible for authorizing new virtual asset services providers, did not comment. Under the current regulatory environment, Binance can only get authorized with money laundering prevention rules in an EU country. The firm has already been approved in France, Italy, Spain, Poland, Sweden, and Lithuania, in anticipation of the EU's Markets in Crypto Assets (MiCA) regulation. MiCA seeks to harmonize the regulatory framework of the bloc and protect consumers from bad actors. Once MiCA's implementation is finalized, firms with registration in one EU country will be allowed to expand their services to other member states.
Binance will keep on working with regulators and getting its business ready for full MiCA compliance. Dutch resident users have received an email with information about what the rejection means for their accounts and assets, as well as the steps that need to be taken. Despite the disappointment, Binance will continue to communicate productively and transparently with Dutch regulators. This new development joins the ongoing struggles of the crypto industry, such as the lawsuit by the U.S. Securities and Exchange Commission against Binance and its CEO Changpeng Zhao for unregistered offer and sale of securities, and commingling investor funds with their own.
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