Binance, the world’s largest cryptocurrency exchange, has encountered significant challenges in both the Netherlands and France.
According to News Source, The exchange’s decision to exit the Dutch market stems from its inability to secure a Virtual Asset Service Provider (VASP) license from the Dutch regulator . Consequently, starting from July 17, 2023, residents of the Netherlands will only be able to withdraw their funds from the platform, and Binance will no longer accept new users from the country.
Meanwhile, in France, Binance finds itself under investigation by prosecutors for alleged violations of the nation’s anti-money laundering laws and involvement in illegal operations as a digital assets provider.
This investigation, which began over a year ago, primarily focuses on Binance’s suspected involvement in aggravated money laundering practices. However, Binance has asserted its adherence to all French laws and is actively cooperating with regulators and law enforcement agencies.
These recent developments in the Netherlands and France compound the legal and regulatory hurdles that Binance has been facing globally. Notably, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, along with its U.S. subsidiary, as well as its founder and CEO, Changpeng Zhao.
The lawsuit alleges the sale of unregistered securities and operation as an unlicensed securities exchange. Moreover, discussions between Binance’s U.S. platform, Binance.US, and the SEC are ongoing in an effort to prevent potential asset freezes.
It is worth highlighting that Binance has been actively working towards compliance with anti-money laundering guidelines in various European countries. Currently, the exchange is already compliant with anti-money laundering regulations in countries such as France, Italy, Spain, Poland, Sweden, and Lithuania.
However, Binance recently made the decision to exit Cyprus to prioritize achieving full compliance with the new crypto-asset rules established by the European Union, known as MiCA.
In summary, Binance’s departure from the Netherlands is a consequence of its failure to obtain a VASP license from the Dutch regulator. Simultaneously, the exchange is facing an investigation in France for alleged breaches of anti-money laundering laws. These developments further compound the numerous legal and regulatory challenges that Binance has encountered on a global scale, including the ongoing SEC lawsuit in the United States.
