New York-based cryptocurrency exchange Gemini has announced its decision to exit the Dutch market, a move that mirrors the actions of industry leader Binance. The company attributes its departure to its inability to meet the regulatory demands imposed by the De Nederlandsche Bank (DNB). However, Gemini assures its users that it plans to return to the Dutch market. It achieves full compliance with the new crypto asset regulations.
A Farewell to Dutch Users
In a communication addressed to its Dutch user base on September 26th, Gemini urged its customers to take action before November 17th. Users were given two options: withdraw their assets or transfer them to an alternative wallet address. The impending suspension of operations in the Netherlands was framed as a response to the strict requirements set forth by the DNB. Gemini’s message read, “We kindly ask you to proceed in emptying your Gemini account, ensuring that you no longer have a balance on your account as of 17th November 2023.”
Bitvavo: The Suggested Alternative
Gemini has recommended that its users consider transferring their funds to Bitvavo. A local cryptocurrency exchange fully compliant with the DNB’s regulations. Bitvavo, founded in 2018 and headquartered in Amsterdam, holds membership in the Dutch Association of Bitcoin Companies.
The Road to Compliance
Gemini’s exit from the Netherlands is not a permanent one. The exchange has expressed its intention to return to the Dutch market once it ensures that its business operations align with the new rules governing crypto assets, as outlined in the Markets in Crypto-Assets regulations (MiCA).
Earlier in the summer of 2023, Binance, a major competitor of Gemini on the global stage. It also ceased its operations in the Netherlands due to non-compliance with the DNB’s requirements. The possibility of Binance returning to the Dutch market hinges on its ability to meet the standards set by MiCA. Which seeks to unify crypto regulations across the European Union.
A Growing List of Registered Providers
Presently, the DNB has registered 37 virtual asset providers, including well-known names like eToro, Coinbase, Crypto.com, and BitPay. These companies have successfully navigated the regulatory landscape and secured their positions in the Dutch market.
Gemini’s decision to halt operations in the Netherlands highlights the growing importance of regulatory compliance in the cryptocurrency industry. As the crypto landscape evolves, exchanges must adapt to changing regulations to ensure their longevity in various markets. Gemini’s intention to return underscores the belief in a future where cryptocurrencies and traditional finance can coexist within a structured regulatory framework.