Binance Decides to Send Its Dutch Clients to Coinmerce after It Leaves the Local Market

After failing to obtain a virtual asset service provider (VASP) license from the Dutch regulator, Binance announced that it would cease operations in the country. The world’s largest exchange by volume announced its withdrawal from the Netherlands last month, warning its users that it will close down shop on July 17th.

However, the exchange became a popular crypto platform in the country, amassing hundreds of thousands of Dutch users, according to its rival, Coinmerce. Now that the exchange will withdraw from the country, it entered into an agreement with Coinmerce to transfer all of its Dutch customers to the local exchange.

With so many users transferring to Coinmerce, the local crypto exchange will become the country’s largest digital currency trading platform in terms of products, assets, and users. Unlike Binance, Coinmerce does possess all the necessary licenses to operate as both a crypto exchange and a wallet provider in Holland.

Jaap de Bruijn, the CEO of Coinmerce, commented on the new development, saying that the exchange’s priority is to ensure an orderly transition of local crypto traders and investors. “Urgent treatment of these users is necessary. The crypto assets of the Dutch users at Binance will be transferred to Coinmerce via a controlled transition,” he said

Binance is leaving due to the inability to obtain a local license

Following regulatory scrutiny in countries around the world for offering products without the proper licenses, Binance is now taking compliance very seriously. Its conflict with the US SEC also contributed to the exchange doing its utmost not to get into trouble with even more authorities. As soon as it became apparent that the company could not obtain the VASP license, it immediately terminated the onboarding of new clients in the Netherlands.

Its existing customers also found themselves with limited services, as Binance only allowed them to withdraw their funds, while deposits and entering new trades were no longer possible. The exchange warned the users that they have until July 17th to withdraw their funds from the platform. After that, the exchange will terminate all small European nation operations.

Nick Smith van Oyen, the Coinmerce co-founder, said that his company is very proud of its partnership with Binance. “We offer these users an equivalent platform that complies with all European laws and regulations. The transition will be smooth and, in consultation with Binance, we have made the transition for users as easy as possible,” he added.

The transfer of users should be very simple — they will receive an email from Binance, and from there, all they need to do is follow a simple step-by-step process.

Binance faces scrutiny throughout Europe

Binance’s future, however, remains unknown. The platform is facing regulatory troubles around the world, with the most severe situation being in the US, where the US SEC is targeting its subsidiary, Binance.US. However, that is not the end of its woes. Rumors are saying that the exchange was raided in France due to suspicions of money laundering and illegal crypto services.

Last year, the Dutch regulator fined Binance 3.3 million EUR for operating while unregistered. The exchange also made a move to deregister its UK unit, although non-crypto-related circumstances supposedly caused this. The situation is not much better in Germany, either. The local regulator, Bafin, rejected the exchange’s application to become a registered entity. Binance is losing a major share of its market, and given how things have been going, it is lucky to just be rejected instead of being taken to court or fined.