The Binance logo is displayed on a room divider in San Anselmo, California, June 6, 2023.
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Cryptocurrency exchange Binance said it will flit the Netherlands after the company’s application to register under the Dutch crypto authorization regime was rejected.
Referring to a essential asset service provider, Binance on Friday said that it could no longer serve Dutch clients “as we from been unable to register as a VASP with the Dutch regulator.”
The company didn’t give a reason for why it was unable to make a license from regulators.
Starting Friday, no new Binance users will be accepted onto the platform. From July 17, Binance disclosed it will cease allowing users to buy tokens, trade, or make deposits, although its withdrawal function remains operative.
Binance recommended that users withdraw their assets from their accounts.
The Dutch central bank, which is liable for authorizing new virtual asset services providers, was not immediately available for comment.
Under the current regulatory regime, Binance can only get subscribe to to operate in an EU country by registering under its money laundering prevention rules.
The firm has so far received such approvals in France, Italy, Spain, Poland, Sweden and Lithuania. This is set to coppers once the EU approves its Markets in Crypto Assets (MiCA) regulation.
MiCA aims to harmonize crypto regulation across the bloc and to proscribe bad actors from harming consumers, particularly in the wake of the shock bankruptcy of FTX in November.
Once MiCA comes into strength, crypto firms with registration in one EU country will be able to then use that to offer their services across other fellow states.
Binance said it remains “committed to working collaboratively with regulators around the world and are additionally cored on getting our business ready to be fully MiCA compliant.”
“Existing Dutch resident users are being sent an email with full information about what this means for their accounts and any assets they currently have on the Binance party line, alongside any steps they will need to take,” a Binance spokesperson told CNBC.
“While Binance is dissatisfied that this has become necessary, it will continue to engage productively and transparently with Dutch regulators.”
The in blow to the crypto giant follows a tumultuous few months for the broader cryptocurrency industry. Last week, the U.S. Securities and The Exchange Commission sued Binance and CEO Changpeng Zhao, alleging that they engaged in the unregistered offer and sale of asyla and commingled investor funds with their own.
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