The largest cryptocurrency exchange, Binance announced on Friday that they will leave the Dutch market with immediate effect. This is believed to be due to Binance's failure to get VASP.
According to Binance, no new users living in the Netherlands will be accepted on the crypto exchange immediately. However, existing Dutch users will be allowed to withdraw their assets from the platform from 17 July 2023, while no further purchases or trades will be allowed.
Binance mentioned that it is engaged in an extensive registration process to obtain a virtual asset service provider (VASP) license with the regulator. The exchange is also trying to explore other avenues in the country.
This development comes amid Binance facing a legal challenge from one of the top financial regulators, the US Securities and Exchange Commission (SEC). The US Commission has charged Binance and its executives with securities violations. However, the SEC is also looking to freeze crypto exchange assets.
At the same time, Binance also deregistered as a crypto-asset service provider in Cyprus amid legal challenges from the U.S. SEC.