It is worth mentioning that there are exchanges in the Netherlands that continue to operate without registration, even though Binance has decided to exit the market.
Binance, the world’s largest cryptocurrency exchange, made the news by announcing its departure from the Dutch market. The reason behind this decision was its inability to register as a Virtual Asset Service Provider (VASP) with the regulatory authorities. Speculations suggest that Binance might have been compelled to make this move. However, Binance’s CEO released a statement addressing the issue.
Binance Faces Potential Heavy Fines in Recent Threats
Also Read: SEC Lawsuit Ripple Effect: BinanceUS Staff Cuts, Coinbase’s Market Share Dented by Robinhood
According to reports, the central bank of the Netherlands, De Nederlandsche Bank (DNB), has imposed a fine of $3.3 million on Binance for operating without proper registration. The regulatory authority has also denied granting the largest cryptocurrency exchange a license to operate as a Virtual Asset Service Provider (VASP).
It’s worth noting that several exchanges are stiBinance CEO CZll operating in the Netherlands without proper registration, while Binance has chosen to withdraw from the market. In contrast, Coinbase Global Inc, the largest exchange in the United States, has managed to obtain a Virtual Asset Service Provider (VASP) license in the country.
Speculation suggests that the Dutch Central Bank may have threatened Binance with a heavier fine, leading to its decision to exit the market.
Binance CEO, Changpeng Zhao (CZ), has responded to speculations by stating that there is “no beef” between Binance and the Dutch Central Bank. He acknowledged that Binance is a large and complex crypto exchange. However, he pointed out that there are approximately 50 local Virtual Asset Service Provider (VASP) license holders in the Netherlands, which should offer sufficient access to cryptocurrencies.
CZ also mentioned that the Netherlands remains more progressive in terms of digital assets compared to other countries.
Is the Biggest Crypto Exchange Losing Ground in the EU?
Amid regulatory challenges with the U.S. Securities and Exchange Commission (SEC), Binance had been seeking regulatory clarity in European countries. However, the recent actions by the biggest crypto exchange have raised concerns about the future of the digital assets market, leaving users uncertain about what lies ahead.
Reports indicate that Binance has obtained approval to operate within the current regulatory framework in several EU countries. The exchange has successfully gained approvals in countries such as France, Italy, Poland, Lithuania, Spain, and Sweden. This signifies a significant step forward for Binance in expanding its operations and complying with regulations in these specific jurisdictions.
Also Read: Binance Türkiye Engages with Entrepreneurs in First Meeting
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
Follow Cryptos Headlines on Google News
Join Cryptos Headlines Community
