Binance is shuttering operations in the Netherlands after failing to secure a virtual asset provider license from the Dutch central bank.
As part of its exit, Binance has offered to move users’ assets for free to rival crypto exchange Coinmerce, which has secured regulatory authorization to operate in the country.
The exchange will cease all services for Netherlands-based users on July 17, 2023, and has urged them to move their assets before the deadline.
Referral Partnership
The referral partnership with Coinmerce is supervised and approved by De Nederlandsche Bank (DNB), according to the July 6 press release.
Coinmerce CEO Jaap de Bruijn said:
“Our priority is to ensure an orderly transition. Urgent treatment of these users is necessary. The crypto assets of the Dutch users at Binance will be transferred to Coinmerce via a controlled transition.”
According to the release, users who wish to participate in the transfer will be sent an email detailing the next steps for a “simple and secure” transfer of their assets to Coinmerce.
Regulatory disapproval
Binance has faced increasing regulatory disapproval in recent weeks, especially in Europe, with the Dutch being the latest in a spate of rejections.
Like the Netherlands, German regulators rejected the exchange’s application for a crypto custody license in late June. Binance said it will continue to engage with German authorities to find a solution.
Meanwhile, the exchange pulled out completely from Austria, Belgium, and Cyprus for various reasons, including regulatory pressure and a lack of progress in securing licensing.
The exchange told CryptoSlate at the time that it remains committed to the European markets but intends to shift its focus toward preparing for the upcoming Markets in Crypto Assets (MiCA) rules
MiCA will start to come into force in the coming months and will establish a regulatory framework for the crypto industry in the European Economic Area.
Neither Dutch authorities nor Binance had responded to requests for comment as of press time.
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