Binance exits Netherlands; under investigation in France
Troubled cryptocurrency heavyweight Binance has announced that it is leaving the Dutch market with immediate effect, as it faces a French investigation.
Binance exits the Netherlands after failing to obtain VASP licence
The action is a result of Binance failing to secure a virtual asset service provider (VASP) licence in the Netherlands. While it will not be accepting any new users residing in the Netherlands effective immediately, from 17 July, existing Dutch resident users will only be able to withdraw assets from the Binance platform.
“Although we 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,” Binance says in a statement.
It adds that it will continue its efforts to land necessary authorisations to offer its products and services to Dutch users.
The news follows just a week after the US Securities and Exchange Commission (SEC) filed charges against both Binance and Coinbase, with the SEC chair alleging that Binance and its founder Changpeng Zhao “engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law”.
Troubles in France
In France, the cryptocurrency exchange is under investigation for the “illegal” provision of virtual asset services before receiving regulatory approval last May, and for “aggravated” money laundering, according to the Paris prosecutor’s office.
However, Binance stresses in a statement that it is “already compliant” with EU standards on the prevention of money laundering and terrorism financing through its registrations in other EU countries including France, Italy, Spain, Poland, Sweden and Lithuania.
On Twitter, Binance and Zhao both confirmed a “surprise” on-site visit by French regulators.
“We abide by all laws in France, just as we do in every other market we operate,” Binance says.
“We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification.”
