Crypto.com gets Dutch license, a month after Binance ouster
Crypto.com has been granted approval by the Dutch central bank, De Nederlandsche Bank (DNB), to offer its cryptocurrency services in the Netherlands.
Crypto.com said it received registration after it had completed a thorough review of its business and compliance practices to meet the country’s Anti-Money Laundering and counter-financing of terrorism requirements. Its parent company, Foris DAX Global Limited, is now listed in DNB’s public register as a registered crypto service provider.
This registration makes Crypto.com one of 36 cryptocurrency-related businesses currently approved by the Dutch central bank, alongside major players like Coinbase Europe, eToro, and Bitstamp.
Interestingly, the approval comes in the wake of Binance’s failure to secure registration in the Netherlands, leading to its exit from the country. 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. As a result, the world’s largest crypto venue directed its Dutch customers to rival crypto exchange Coinmerce.
To encourage regulated business within the crypto industry, the country adopted a licensing scheme for digital assets services after the amendment it introduced two years ago to the EU’s Money Laundering Directive. The Dutch government also introduced a raft of new regulations, including tougher KYC rules for digital currency transactions.
“Collaborating with regulators to responsibly advance the crypto and blockchain industry is of paramount importance to Crypto.com. This registration approval from De Nederlandsche Bank is a significant milestone for our business and the latest testament to our commitment to compliance. We look forward to continuing to work with DNB and other regulators around the world,” said Kris Marszalek, CEO of Crypto.com.
Crypto.com has been expanding its presence in various jurisdictions and has recently received regulatory approvals in Singapore, France, Italy, the U.K., Dubai, and Australia.
In a different context, Crypto.com discontinued its institutional exchange service for professional customers in the United States in June. The Singapore-based cryptocurrency exchange cited a decline in demand, likely influenced by the current market conditions in the US, including the ongoing legal actions against prominent exchanges such as Binance and Coinbase.
Crypto.com was in the news earlier this year when it announced plans to lay off 20% of its corporate workforce, or nearly 1000 people, in order to adapt to current market conditions. At the time, CEO Marszalek said several factors played into their decision to reduce headcount. Despite maintaining a strong balance sheet, he claims, Crypto.com had to navigate economic headwinds and unforeseeable industry events. He explains that they grew ambitiously at the start of 2022, aligning with the broader industry, but the trajectory has now changed with a confluence of negative developments.