Binance to quit the Netherlands and faces investigation in France
Binance has suffered setbacks in two European markets after it announced plans to quit the Netherlands and came under investigation by French prosecutors.
The world’s largest cryptocurrency exchange said it was leaving the Dutch market after it failed to obtain a licence from the country’s central bank.
A spokesperson for the company said: “Binance has been in a comprehensive registration application process as a virtual asset service provider (Vasp) with the Dutch regulator … Unfortunately, this has not resulted in a Vasp registration in the Netherlands at this time.”
Binance said that from 17 July, Dutch residents would only be able to withdraw their assets from the platform and further trading or deposits would not be possible. It advised users in the Netherlands to withdraw funds from their accounts.
In France, Le Monde newspaper reported that prosecutors were investigating Binance because of its antimoney laundering procedures and the fact that it advertised its services in the country before it was registered with the financial markets regulator. Binance was registered with France’s Financial Markets Authority in May 2022.
A Binance spokesperson confirmed that the company had been visited by French authorities last week.
“We had an on-site visit last week by the relevant authorities. Binance, as always, was fully collaborative and we met our obligations accordingly. We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards,” said the spokesperson.
Binance is under pressure from regulators in the US and is being sued by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission after allegations of trading in crypto assets and derivatives without the appropriate regulatory approval.
Separately, the company’s US platform, Binance.US, which is owned by its chief executive, Changpeng Zhao, is in talks with the SEC to avoid a total asset freeze. The company has warned that its operations will “grind to a halt” if a US judge grants the regulator’s request for an asset freezing order.
Binance’s closest rival, Coinbase, is also being sued by the SEC, which accuses it of operating an illegal exchange.