Binance, the largest cryptocurrency trading platform in the world, is leaving the Dutch market. The company announced this on Friday.
Binance users will no longer be able to register immediately, and from next month it will only be possible to withdraw credits from the platform in the Netherlands. The app can no longer be downloaded.
According to Binance, the reason for the departure has to do with the dragging registration process of the crypto exchange in the Netherlands. About two years ago, Binance was warned by De Nederlandsche Bank (DNB) that the exchange was not registered with the regulators, which is required by law.
Last year, that registration was still not in order and the crypto exchange was fined 3.3 million euros. Such a registration is mandatory for providers of crypto services, for example to prevent money laundering. Criminals often use cryptocurrencies to evade banks and controls, and because the transactions are difficult to trace.
Problem with DNB unclear
Binance has recently tried to meet the registration requirements, but was unable to complete them. It’s unclear what it got stuck on. DNB does not comment on the course of the registration process. The company has now discontinued the procedure: “I am quite disappointed with this outcome,” says Roy van Krimpen, Binance’s Dutch representative.
In the Netherlands, the crypto exchange probably has a few hundred thousand customers. Binance has about 130 million users worldwide and 13 billion euros are passed around every day.
European license target
Binance does want to try to get a license to operate throughout the European Union. This is possible under a recently passed law (the MiCAR) that will come into effect next year. A permit in one EU country is therefore valid in all other EU countries. In France, Italy, Spain and Poland, Binance says it already has the right papers. But in France, Binance is also under close scrutiny from authorities for facilitating money laundering.
The crypto exchange has been banned in the United States since 2019. There it did not meet the proper regulations due to the lack of a legitimate US headquarters. That is why Binance opened a subsidiary there: Binance US. But this, too, recently came on the radar of the US regulator and has been banned in several states.
A version of this article also appeared in the June 17, 2023 newspaper.