Binance has faced significant challenges in its US operations due to mounting regulatory scrutiny. Furthermore, it has encountered difficulties in obtaining a license in other regions as well. The exchange recently announced its departure from the Netherlands as a major obstacle to its global expansion plans. This decision came after the company failed to secure a virtual asset service provider (VASP) license from the Dutch regulator. Starting from June 16, Binance will no longer accept new users residing in the country.
Existing users who are residents of the Netherlands will have until July 17 to withdraw their assets from the Binance platform. The exchange has urged these users to take appropriate action within the provided timeframe.
In an official statement, Binance explained that it had undergone an extensive registration application process with the Dutch regulator to become a VASP. Despite exploring various alternative solutions to comply with Dutch regulations, the company was unable to obtain a VASP registration in the Netherlands at this time.
This development comes almost a year after the exchange received a $3.4 million fine from the Dutch central bank for operating in the country without proper registration. Despite the exit from the Netherlands, Binance expressed its commitment to maintaining productive and transparent communication with Dutch regulators.
Binance Expanding Its Services to Other Regions
Apart from the Netherlands, Binance has successfully obtained regulatory approval in several European Union countries, including France, Italy, Spain, Poland, Sweden, and Lithuania.
In a recent move, the exchange announced the establishment of a new blockchain hub called the “Web3 outpost” in Georgia. This initiative aims to enhance blockchain education and accelerate the adoption of cryptocurrencies in the region. The exchange also launched a subscription-based cloud mining service for Bitcoin.