Binance Sets Deadline for Dutch Users to Clear Out Crypto Holdings

Sahana Kiran
Source – CNBC

Binance, the largest cryptocurrency exchange worldwide, has been actively expanding its services globally. However, as regulatory oversight becomes stricter in the cryptocurrency industry, obtaining licenses has become more challenging. As a result, Binance has made the decision to withdraw its operations from various regions, including the Netherlands.

More recently, Binance reached out to its users in the Netherlands and advised them to withdraw their cryptocurrency assets from the platform. As per a recent report, these users have been given a deadline of August 17, 2023, to complete the process of emptying their holdings. The exchange said,

“If you have not withdrawn your Digital Assets from your account before August 17th, 2023, Binance reserves all rights to take the appropriate action required to leave the Netherlands, including closing your individual Binance wallet and deeming your Binance account as a dormant account.”

Furthermore, if users fail to withdraw their digital assets before the given deadline, they will still retain a contractual claim corresponding to the specific number and type of digital assets that were held in their individual accounts.

In June, Binance made an official announcement regarding its exit from the Dutch market. The reason behind this decision was the exchange’s inability to obtain a virtual asset service provider [VASP] license. This is essential for complying with anti-money laundering regulations in the region. As a result, the exchange immediately halted the acceptance of new users from the Netherlands. Furthermore, earlier this week, all users residing in the Netherlands had their crypto deposits blocked by the exchange.

Additionally, in 2022, the Dutch central bank imposed a fine of 3.3 million euros or $3.6 million on Binance. This was for providing services to clients in the Netherlands without the necessary authorization.

Also Read: Netherlands ‘Dismiss’ Binance’s Licence Application

Binance drives customers into rival exchange

At the beginning of this month, Binance directed its Dutch customers to consider using Coinmerce, a competing cryptocurrency exchange. Coinmerce released a statement clarifying that users have the option to transfer their digital assets free of charge. The priority of this arrangement was to guarantee a smooth and organized transition for the affected users.

Also Read: Here’s Why the Dutch Central Bank Fined Binance for $3.3 million