Binance, the world’s largest cryptocurrency exchange, is exiting the Dutch market after failing to obtain a virtual asset service provider (VASP) license from the Dutch regulator. Starting from July 17, Dutch residents will no longer be able to trade, deposit, or purchase cryptocurrencies on the platform. In this article, we’ll explore the reasons behind Binance’s exit from the Dutch market, the implications for Dutch users, and what other options are available for them to trade cryptocurrencies.
Why is Binance discontinuing its trading platform in the Netherlands?
Binance has announced that it will stop offering its crypto trading platform in the Netherlands as of July 17. The move comes after the platform was unable to obtain registration from De Nederlandsche Bank, which is required for crypto platforms to operate in the country due to anti-money laundering guidelines.
What will happen to existing users of Binance in the Netherlands?
Existing Binance users in the Netherlands will only be able to withdraw currency from the platform after July 17. They will no longer be able to make new purchases, exchanges, and deposits through Binance. Open options, loans, and other revolving “positions” will be gradually closed, although the timeframe for this is not clear. Binance advises Dutch users to close their positions and withdraw their money themselves.
Can Dutch users still convert their cryptocurrency to euros on Binance?
Yes, the conversion market with which euros and USDT can be exchanged to enable withdrawals in euros will remain available. USDT is a token linked to the dollar that is mostly used as a general “normal” currency on Binance to buy cryptocurrency with.
Why was Binance unable to obtain registration from De Nederlandsche Bank?
Binance has applied for registration with De Nederlandsche Bank, but the bank has not provided any details on why the mandatory registration ran aground. However, Binance has been fined millions by DNB for not registering but still offering its services. Binance says it wants to continue working with the Dutch authorities and complies with all European legislation surrounding crypto platforms.
What are Alternative Crypto Trading Platforms for Dutch Traders?
With Binance discontinuing its crypto trading platform in the Netherlands, existing users will only be able to withdraw their currency from the platform after July 17. Dutch traders who are looking for alternative crypto trading platforms can explore the following options:
- Bitvavo: Bitvavo is a Dutch-based crypto trading platform that offers a user-friendly interface and a wide variety of cryptocurrencies to trade. The platform has a low fee structure and is regulated by the Dutch Central Bank.
- Coinmerce:Coinmerce is a well-known Dutch broker founded in 2017 and headquartered in Aalsmeer, North Holland. At the moment they offer more than 200 different cryptocurrencies such as Bitcoin, Ethereum and Litecoin. The broker, who offers fiat off/on ramps for cryptocurrency, focuses entirely on usability and simplicity for its users.
- Bitladon: Bitladon is part of a Dutch company named Coin Meester B.V. and is registered with De Nederlandsche Bank (DNB).
- Bybit: Closest competitor of Bybit, after the downfall of FTX last year. The exchange offers a wide range of trading tools, derivatives, staking & earning features. Bybit is not available for citizens of the United States.
- Huobi: Huobi is a Singapore-based exchange with service centers in multiple countries and a mission to empower financial services and liberate global wealth. This has become a reality through giving access to their online services in over 130 different countries and generating a trading volume of over $2.3 trillion in the year 2020.
- MEXC Global: MEXC Global, Founded in 2018, is known as the exchange of high performance and mega transaction matching technology. With over 6 million users in more than 70 countries around the world, MEXC Global aims to become the go-to platform for new traders and experienced investors as they move forward in their financial journey.
As Binance focuses on countries where it has a more established footprint, such as France, Italy, and Spain, traders in the Netherlands can explore other reliable options to continue trading cryptocurrencies.