Binance, one of the world’s largest cryptocurrency exchanges, recently terminated its services in the Netherlands after failing to obtain a virtual asset service provider (VASP) license from De Nederlandse Bank (DNB), the Dutch central bank. The details surrounding Binance’s unsuccessful registration attempts remain undisclosed due to the confidentiality requirements of Dutch supervisory laws.
On June 16, Binance announced its decision to cease operations in the Netherlands with immediate effect. While Dutch customers will still be able to withdraw their assets from the platform until July 17, trading and deposits were halted as soon as the announcement was made. Binance claimed to have undergone a rigorous registration process to secure a VASP license in the Netherlands and explored alternative options to serve Dutch residents. The exchange confirmed its intentions to continue pursuing authorization to offer its services and products in the country.
To shed light on Binance’s registration efforts, Cointelegraph reached out to Tobias Oudejans, the DNB press officer for supervision, fintech, cryptocurrencies, resolution, and payment systems. However, Oudejans stated that the central bank could not provide further details regarding Binance’s registration due to the confidentiality requirements imposed by supervisory laws. He emphasized that the DNB’s silence on this matter should not be misconstrued as unwillingness to comment but rather a legal necessity.
Had Binance successfully obtained a VASP license, it would have joined the list of 35 registered VASPs under the supervision of the DNB. Notable entities on this list include Coinbase Custody International, Coinbase Europe, eToro (Europe), BitPay, and Bitstamp.
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Oudejans clarified that VASP registration requirements in the Netherlands align with those imposed on other financial institutions under the DNB’s supervision. These requirements are based on the Netherlands Anti-Money Laundering and Anti-Terrorist Financing Act. However, Binance may have an opportunity to operate in the Netherlands through an alternative route come 2024. The recently published Markets in Crypto-Assets regulation (MiCA) by the European Union (EU) could potentially open doors for Binance if it meets the necessary requirements in other EU member states. Oudejans highlighted that the implementation of MiCA in the Netherlands is yet to be determined, but it could offer Binance access to the Dutch market through registered entities from other EU countries.
In preparation for compliance with the new EU rules outlined in MiCA, Binance has already expressed its commitment to becoming fully compliant. This commitment comes after the DNB fined Binance €3.3 million ($3.6 million) in July 2022 for operating without clearance in the Netherlands.
Comparatively, Coinbase, another prominent cryptocurrency exchange, obtained regulatory approval from the DNB in September 2022. This approval coincided with Coinbase’s efforts to expand its operations beyond the United States and into Europe. However, Coinbase is currently engaged in a highly publicized legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations of operating as an unregistered securities exchange, broker, and clearing agency.
While Binance’s failure to secure a VASP license in the Netherlands has halted its services in the country, the exchange remains determined to overcome this setback and continue serving Dutch residents. The outcome of Binance’s registration efforts reflects the evolving landscape of cryptocurrency regulation worldwide and highlights the importance of compliance for exchanges operating in various jurisdictions.
