Binance offers Dutch users the option to transfer client assets to a competitor after Failure to obtain a local license amid a broader regulatory crackdown.
Binance clients can transfer assets to Coinmerce, an exchange that was licensed by the Central Bank of the Netherlands in 2020.
Binance offers Dutch users a seamless transition to a licensed exchange
Binance will cease operations in the Netherlands on July 17th.
Coinmerce CEO Nick Smits-Van Owen told Binance users that the change should be easy.
“The transition will be seamless, and in consultation with Binance we have made the transition as easy as possible for users. The user will receive an email from Binance and from there the simple step-by-step process will begin.”
This move likely bodes well for users when crypto assets law takes effect in Europe next year. The bill delegates licensing to local market regulators and allows exchanges with their passport to other EU member states.
Read about other Binance alternatives here.
Meanwhile, Coinmerce He says They “comply with all European laws and regulations.”
Earlier this month, Binance confirmed that it had failed to meet Dutch licensing requirements but was looking at other options.
CZ hints at the short-term effects of regulatory campaigns
Recent regulatory actions in Australia, Canada, Germany and the United States have negatively impacted spot and derivatives trading volumes on Binance.
Binance CEO Changpeng Zhao confirmed in a Twitter Spaces AMA yesterday that external pressures are hurting their business. Its share of spot volume fell 41.6% in May, while its share of the derivatives pie fell 10% to 56%.
Yesterday, the Australian financial markets regulator inspected the local offices of the exchange as part of its derivatives investigation. The Australian Securities and Investments Commission began investigating how the exchange identified wholesale investors earlier this year.
Under Australian law, only wholesale investors can trade derivatives such as futures and options. After the agency launched its investigation, Binance asked ASIC to revoke the derivatives license.
In addition, the exchange suffered from regional banking restrictions. Banks have limited access for Binance users to payment gateways, while Westpac recently introduced stricter due diligence when considering whether crypto customers should be on board.
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