Binance withdraws from the Netherlands amidst SEC lawsuit

Binance, the largest crypto exchange by volume, withdrew from the Dutch market as it failed to get a license to operate in the Netherlands. The exchange is currently engaged in a legal battle with the US Securities and Exchange Commission (SEC).

As of July 17, Dutch residents will have access to withdrawals and no further services on Binance’s platform. The exchange explains that it is focused on the process of becoming fully compliant with the European Union’s rules on cryptocurrencies (MiCA).

Also read: XRP price to hit $30 if Ripple wins lawsuit against the SEC, hedge fund manager says

Binance leaves Netherlands after failure to register

The crypto exchange is currently embroiled in a legal battle with the SEC, fighting allegations of securities laws violations. To find out more about the lawsuit’s update, check this post. 

Upon its failure to register with the Dutch regulator, Binance announced its exit from the Netherlands.

The exchange needs a Virtual Asset Service Provider (VASP) license to attest that its platform meets Anti-Money Laundering (AML) guidelines. Binance’s announcement reveals that no new users residing in the Netherlands will be accepted to the exchange, effective June 16. Starting July 17, 2023, existing Dutch resident users will be able to withdraw their assets from the platform, without access to other services like deposits and trade.

Binance’s announcement reads:

We encourage those [who are waiting to withdraw assets] users to take appropriate action by withdrawing assets from their accounts.

Binance is AML compliant in six EU nations, offering crypto services to users

The European Union has been receptive to crypto exchange platforms that are compliant with their AML rules. Binance has attained the status of AML compliance in France, Italy, Lithuania, Poland, Spain and Sweden.

With regards to its exit from the Netherlands, Binance said:

Although Binance explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately this has not resulted in a VASP registration in the Netherlands at this time.

Earlier this week, the exchange shared its plan to exit the EU nation of Cyprus to focus on becoming fully compliant with the new rules on Markets in Crypto Assets (MiCA).