In a recent development, Binance, a global cryptocurrency exchange, has partnered with Coinmerce to assist its users in the Netherlands as the exchange winds down its operations in the country. Coinmerce, a Dutch crypto exchange, will facilitate the transition for “hundreds of thousands” of Binance users by offering them the option to transfer their digital assets to its platform free of charge.
Binance had previously announced its decision to largely halt its services for Dutch users on July 17. The move came after the exchange failed to obtain a virtual asset service provider license from the Netherlands. To ensure a smooth transition for affected users, Coinmerce will provide an equivalent platform that complies with all European laws and regulations. The cooperation between the two exchanges aims to make the transition process as easy as possible for the users involved.
The central bank of the Netherlands had fined Binance Holdings around $3.3 million in April 2022 for operating crypto services without proper registration. The bank noted that Binance had a significant customer base in the Netherlands at the time. This recent collaboration with Coinmerce comes amidst Binance’s expansion into other countries, such as Kazakhstan, while facing regulatory challenges in various jurisdictions. The exchange has been subjected to lawsuits from regulatory authorities like the Securities and Exchange Commission and Commodity Futures Trading Commission in the United States. Additionally, Binance’s French arm is reportedly under investigation.
As Binance exits the Dutch market, this partnership with Coinmerce serves as a solution for affected users who wish to continue their crypto activities. By aligning with a compliant and regulated platform, users can securely manage their digital assets within the confines of European laws. This development highlights the ongoing need for cryptocurrency exchanges to navigate complex regulatory landscapes while providing seamless services to their users.
Overall
The referral program between Binance and Coinmerce ensures a smooth transition for Dutch users and demonstrates the importance of regulatory compliance in the cryptocurrency industry.