Global cryptocurrency exchange Binance has terminated its services in the Netherlands, making an exit from the Dutch market after a bid to obtain a virtual asset service provider (VASP) license failed.

The termination of services is effective immediately, and no new customers from the Netherlands can open an account with the crypto exchange. From July 17 onwards, existing Dutch customers will only be able to withdraw assets from the Binance platform, and no further purchases, trades or deposits will be possible from today.

Binance claimed it explored many alternative avenues to serve Dutch residents in compliance with local regulations. However, no such avenues offered a path to VASP registration.

The crypto exchange is currently sending out emails to its Dutch customers with comprehensive information about the next steps they need to take with their Binance accounts.

Earlier in April 2022, the crypto exchange was slapped with an administrative fine of over $3 million for operating in the country without the required license and registration. The Dutch central bank at the time had claimed that Binance had a large customer base in the country and a significant daily trading volume running into billions, thus the hefty penalty.

The crypto exchange stressed in its announcement that it is compliant with European Union standards on preventing money laundering and financing of terrorism rules. Binance cited its registration in EU countries such as France, Italy, Spain, Poland, Sweden and Lithuania to showcase its EU compliance.

This is a developing story, and further information will be added as it becomes available.