The Dutch central bank fined Binance $3.4 million last summer for operating illegally.
Binance US operations have been restricted by increasing regulatory scrutiny, and the crypto-giant is also having trouble getting a license elsewhere.
Binance declared its exit from the Netherlands as a major setback to its goals for global expansion after failing to obtain a virtual asset service provider (VASP) license from the Dutch regulators.
Binance announced that as of June 16, it will no longer be accepting new users who are citizens of the Netherlands.
On the other hand, existing Dutch residents will only be able to withdraw their funds from the Binance platform as of July 17. The exchange advised consumers to act appropriately by withdrawing funds from their accounts within the allotted period.
According to Binance’s official statement, “Binance has engaged in an in-depth registration application process with the Dutch authority as a virtual asset service provider (VASP). Despite the fact that we considered plenty of various possibilities for providing services to Dutch citizens in accordance with Dutch law, a VASP registration in the Netherlands yet has not been obtained.
The change occurs almost a year after Binance was penalized by the Dutch central bank with a $3.4 million fee for operating illegally in the country.
The exchange said it will keep communicating with Dutch regulators “productively and transparently” despite the most recent decision.
The cryptocurrency exchange has received approval from regulators in a number of EU nations, with the exception of the Netherlands, including France, Italy, Spain, Poland, Sweden, and Lithuania.
More recently, Binance announced the opening of a new blockchain hub in Georgia, known as the “Web3 outpost,” in an attempt to support the region’s accelerated adoption of cryptocurrencies and strengthen blockchain education.