Cryptocurrency exchange Binance has entered into an agreement with Coinmerce to facilitate the transition of its users as it winds down its operations in the Netherlands.
Coinmerce, a Dutch crypto exchange, announced the collaboration in a blog post on July 6.
The partnership will enable hundreds of thousands of Binance users in the Netherlands to transfer their digital assets to Coinmerce’s platform at no cost.
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Binance had previously revealed plans to significantly reduce its services for Dutch users starting from July 17 due to its failure to acquire a virtual asset service provider license in the country.
Coinmerce co-founder Nick Smits van Oyen stated that their platform is fully compliant with European laws and regulations and offers Binance users an equivalent alternative.
He assured a smooth transition process, emphasizing that they had worked closely with Binance to make the switch as effortless as possible for the users.
The trouble for Binance in the Netherlands began in April 2022 when the country’s central bank imposed a fine of approximately $3.3 million on Binance Holdings for operating crypto services without the necessary registration.
At that time, the central bank highlighted the exchange’s large customer base in the Netherlands.
While Binance has been expanding its operations into various countries, it has encountered regulatory challenges in certain jurisdictions.
In the United States, the exchange has faced legal action from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Furthermore, reports suggest that Binance’s French division is currently under investigation.
Despite these regulatory hurdles, Binance continues to explore opportunities for growth in other regions, such as Kazakhstan.
The exchange remains a prominent player in the global cryptocurrency market, but it faces increasing scrutiny from regulators, who are aiming to establish clear frameworks for the operation of digital asset platforms.
As Binance collaborates with Coinmerce to assist its Dutch users with the transition, it remains to be seen how the exchange will navigate the regulatory landscape in different countries moving forward.
