Coinmerce acquires Binance users in Netherlands
Binance has reportedly directed its Dutch customers to rival crypto exchange Coinmerce as it halts its operations after failing to obtain recognition as a virtual asset provider in the Netherlands.
Coinmerce, which has been registered as a provider of crypto exchange and wallet services since 2020, has received endorsement for the process from the Dutch central bank. Jaap de Bruijn, CEO of Coinmerce, said the exchange is committed to ensuring a smooth transition and a hassle-free experience for Binance’s Dutch customers.
Nick Smits van Oyen, co-founder of Coinmerce, said: “We are very proud of this partnership with Binance. We offer these users an equivalent platform that complies with all European laws and regulations. The transition will be smooth and is, in consultation with Binance we have made the transition for users as easy as possible. The user will receive an email from Binance and from there the simple step-by-step process will start.”
Jaap de Bruijn, CEO of Coinmerce, added: “Our priority is to ensure an orderly transition. Urgent treatment of these users is necessary. The crypto assets of the Dutch users at Binance will be transferred to Coinmerce via a controlled transition.”
Binance will exit the Dutch market on July 17, nearly one month after it announced the rejection of its application to register under the Dutch crypto authorization regime.
Citing the inability to obtain registration as a virtual asset service provider (VASP) with the Dutch regulator, Binance stated on June 16 that it would no longer be able to serve clients from the country.
Existing Dutch customers will have a limited timeframe to withdraw their assets from the platform. Binance urged its local users to take prompt action to ensure a smooth transition by adhering to the provided withdrawal timeline.
The development comes nearly a year after Dutch Central Bank fined Binance €3.3 million as the crypto exchange was providing its services in the Netherlands without the required registration.
Binance was originally hit by an administrative fine of a €2 million base amount. However, the DNB said the penalty was increased as the exchange benefited from lower costs because it hadn’t paid registration fees and other regulatory charges, unlike its competitors.
The Dutch central bank also cited Binance’s large client base in the country and its huge trading turnover as additional reasons to hike its fine. Overall, the cryptocurrency exchange was not in compliance with anti-money laundering or anti-terrorism financing legislation in the Netherlands.