- Binance CEO clarifies Dutch market exit: No beef, complex platform at play.
- Dutch National Bank’s decision not to grant Binance a license raises questions.
- Disparity observed in granting VASP licenses to foreign entities in the Netherlands.
In response to recent speculations surrounding Binance’s decision to exit the Dutch market, CEO Changpeng Zhao has shed light on the matter, urging caution not to read too much into the situation. Emphasizing the intricacies of Binance as a large and complex platform, Zhao hinted at the existence of simpler alternatives for Dutch investors through local Virtual Asset Service Provider (VASP) license holders.
Don't read too much into it. No beef. Binance is a large and complex platform. There are 50 simpler local VASP license holders. They should provide decent access for crypto, we hope. Netherland is still pretty progressive all things considered.— CZ Binance (@cz_binance) June 19, 2023
The Dutch National Bank (DNB) had previously levied a fine of $3.35 million against Binance earlier this year, and recently, the exchange giant faced another setback when the DNB opted not to grant them a VASP license. This decision has raised questions and concerns from the crypto community, particularly regarding the potential motives behind Binance‘s exit and the DNB’s actions.
While Binance’s departure affects many investors in the Netherlands, it is worth noting that other exchanges have continued to operate in the country without registration. Expressing curiosity about the underlying circumstances, Richie Fallclis, a crypto enthusiast, speculated whether the DNB may have threatened Binance with a higher fine, ultimately influencing their exit.
Fallclis also pondered the unequal treatment of foreign companies, highlighting that only Coinbase (NASDAQ:COIN), as a foreign entity, managed to obtain a VASP license in the Netherlands, while others were predominantly Dutch.
However, Zhao’s statement suggests Binance’s decision was not fueled by hate between the exchange and the DNB. Instead, the complexities of Binance’s platform and the existence of other VASP license holders offering crypto access were cited as contributing factors.
Zhao acknowledged the Netherlands’ progressive stance on crypto despite the situation, expressing hope that the 50 simpler local VASP license holders would provide a decent alternative for investors.
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