Netherlands (16.06.2023): Binance has stopped its operations in the Netherlands after failing to secure a virtual asset service provider (VASP) license. The termination is effective immediately, preventing new Dutch customers from opening accounts. Existing customers will only be able to withdraw assets from July 17, with no further purchases, trades, or deposits allowed. Binance had previously received a fine of over $3 million in April 2022 for operating in the Netherlands without the necessary license and registration.
Cyprus (14.06.2023): Binance is also winding down its operations in Cyprus. The Cyprus Securities and Exchange Commission has marked Binance Cyprus Limited as “Under examination for application for deregistration” on its website. Despite receiving Class 3 registration as a Crypto Asset Services Provider (CASP) in Cyprus in October, Binance never launched its services in Cyprus. The company is now focusing on complying with the new Markets in Crypto-Assets (MiCA) regulations over the next 18 months.
France (16.06.2023): Binance's French unit is under investigation by local authorities for the "illegal" provision of digital asset services and "acts of aggravated money laundering," according to the Paris public prosecutor's office. The investigation relates to illegally operating as a digital asset service provider before it received regulatory approval in May 2022. Despite these challenges, Binance maintains that it abides by all laws in France and continues to work closely with regulators and law enforcement agencies on all ongoing compliance requirements.
Canada (12.05.2023): Binance has announced its withdrawal from the Canadian market, citing new stablecoin guidance and investor limits for crypto exchanges as the reasons for its departure. Other crypto companies that have left Canada include OKX, Paxos, and dYdX, all citing the regulatory environment. Binance’s exit comes as the Canadian Securities Administrators forced crypto asset trading platforms to register with them by March 23. Binance expressed confidence that it will “someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”
The current regulatory scrutiny in the U.S. is confined only to U.S. territory. Many countries, such as the UK and China, are creating a friendly environment for crypto regulations and the impact of the upcoming MiCA regulations in the EU remains to be seen. Binance has wisely separated its operations in the U.S., meaning that the U.S. government can only take legal action against the U.S. subsidiary. The cryptocurrency market is global, and it's important to see how other countries will react to U.S. enforcement actions.
