World, As Seen from the most beautiful islands: Ireland and Cyprus

Will Binance end its presence in Europe?


Binance, one of the world’s largest cryptocurrency exchanges, is facing significant pressure in Europe and beyond. It all started when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and CEO Changpeng Zhao in early June. Binance was accused of offering derivatives without the required certifications, thereby operating illegally.

These developments in the United States have not only affected Binance’s operations in the country itself but have also caused a domino effect. As a result, Binance had to close its doors in Nigeria, Canada, Australia, and many European countries.

Binance’s recent setbacks have been numerous. The company withdrew from the Dutch market after failing to obtain a license as a Virtual Asset Service Provider (VASP) due to non-compliance with the anti-money laundering guidelines of De Nederlandsche Bank (DNB). While Dutch users can still withdraw their funds, they can no longer invest or trade through Binance.

For similar reasons, the company also had to shut down in Belgium, Cyprus, and Austria, where the exchange did not comply with anti-money laundering regulations and Know Your Customer procedures. Binance Markets Limited, a subsidiary of Binance, was forced to cease operations in the United Kingdom after its registration with the Financial Conduct Authority (FCA) was revoked for the same reasons.

These developments have significant consequences for Binance. The exchange is losing a substantial number of customers and witnessing a decline in its market share. European users are also inconvenienced as they have to withdraw their cryptocurrencies from Binance and seek alternatives.

The future of Binance is uncertain and largely depends on how the company adapts to changing regulations. To resume operations in European countries where it had to close doors, Binance must comply with all local and international requirements regarding anti-money laundering measures and customer identification.

However, Binance could also choose to focus on markets where the regulatory environment for crypto exchanges is more favorable or where there is greater growth potential in the crypto market. The company is known for its innovation and offers a wide range of services and products. In the future, Binance could concentrate on developing and offering technologies and services that benefit customers, thereby strengthening its competitive position in the market.

To regain the trust of regulatory authorities and the crypto community, Binance could also seek collaborations with established financial institutions and governments. By working together with these parties, Binance may be able to build a more positive image and demonstrate a commitment to responsible and ethical business practices.

Now more than ever, choosing a regulated and reliable exchange is crucial. Investors should always opt for an exchange that is regulated by institutions like DNB and complies with the rules of the Financial Markets Authority (AFM). At Bitvavo, users can purchase over 180 different cryptocurrencies using payment methods such as iDEAL, Bancontact, and PayPal.

Written by: Liam O'Reilly

Liam O'Reilly is the founder of the publication, a former analyst at a major reputation agency in the UK, who chose Cyprus as his home.

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