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- What – Binance has struck a deal with Coinmerce in the Netherlands to allow its clients to transfer their assets
- Why – Due to the failure to secure a virtual asset provider license from the Dutch central bank
- What Next – Binance is shifting its focus toward preparing for the forthcoming Markets in Crypto Assets (MiCA) standards
Binance and Dutch crypto platform Coinmerce have struck a deal to help those Binance clients in the Netherlands who have been in limbo since Binance pulled out.
According to a July 6 blog post, Binance agreed with Coinmerce to allow hundreds of thousands of Dutch crypto users to transfer their assets for free. The move comes as the exchange shuts down its operations in the Dutch market on July 17, due to the failure to secure a virtual asset provider license from the Dutch central bank (De Nederlandsche Bank).
The referral will elevate Coinmerce to the largest crypto firm in the Netherlands for products, assets, and users, as the platform has already obtained regulatory approval in the country.
Coinmerce CEO Jaap de Bruijn said:
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 shift. “
Binance has assured its clients a smooth transition that will be as easy as possible. The users will also receive an email from Binance and a step-by-step guideline on how to conduct the transfer.
Since 2018, Coinmerce has built a good reputation by setting the standard for secure and easy cryptocurrency trading and storage in the Netherlands and 11 other countries. This has led to Binance bestowing its confidence in the platform, noting:
We have tremendous confidence in Coinmerce because they have a secure platform for our users. We feel comfortable that they can continue trading in a trusted environment.
The Dutch crypto users on the Binance exchange can still use other cryptocurrency exchanges since the recommendation of Coinmerce by the exchange is optional.
Binance Regulatory Backlash
On June 29, Finance Forward’s publication reported that Germany’s financial regulator BaFin turned down Binance’s application for a crypto custody license. However, Binance said it will continue to engage with German authorities to find a solution.
Moreover, Binance has fully withdrawn from Austria, Belgium, and Cyprus for various reasons, such as regulatory pressure.
The giant exchange has, however, stipulated that it will continue to commit to the European markets but will shift its focus towards preparing for the forthcoming Markets in Crypto Assets (MICA) standards.
It will establish a regulatory framework for the crypto ecosystem in the European Economic Area.
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