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After Binance failed to acquire virtual asset service provider (VASP) license that is needed to meet AML requirements, which resulted in Binance having to leave Netherlands market alltogether so from July 17th user from Netherland will be able to withdraw only and no new users will be accepted as of today.

Are such legislations applied according to the Dutch passport or according to the IP addresses? If the ban was according to the IP address, it is easy to claim to the support team that I have moved to another place, even if it was according to the passport, it does not seem logical.

Starting from Canada and now Netherlands it appears that before the end of the year we will have a list of countries where Binance has failed to comply with regulatory standards.

The regulatory bodies are not letting Binance to continue providing their service in those countries. Although, Binance has been doing very well for the crypto users and specially the traders, but now the odds are against them and they might leave many other countries in fear of getting accused. After the allegations of Sec on Binance and its ceo CZ, the things are very totally blown up for them. I'm pretty sure that CZ is aware that he's being targeted this time very harshly and that's why he will exit his service from all those countries which are against Binance.

I'm very sure that the exchange will do its best to continue providing its services to international users and they won't exit the crypto-market like others. However, things will be tough for them in coming months and that's the reason due to which they are stopping their services in the countries which aren't favoring them to continue the services and they aren't even giving them the required licenses.

Much likely through IP address. It's possible that you can reason that you've moved out of the Netherlands and you're not covered by their policy leaving the country but I guess you'll be subjected to another series of KYC to prove that.

Yeah and there's still a hot issue that they're going on against the US' SEC.

It's possible that they really can't meet what's being asked for the license/VASP. But one big reason is that it is, the regulators are being hard on them and won't allow to be on their jurisdictions operating with their own market. Hopefully, more reasons to come out coming from Binance themselves.

If the regulations are similar to the implementation of my country which also prohibits Binance from operating, the restriction is only by filtering IPs. However, it is still possible for local users using binance to somehow be able to access the site without changing their original KYC identity.
If you use the Apps version, you can still access your account without problems.

The Dutch Passport or Government Issued ID will definitely be the first thing they look at since we know that almost all users on the platforms have to first KYC unlike back then when KYC verification was still relaxed. Geo-blocking IP address will be secondary just like it happened to the US Citizens on the main platforms

The only way of safely using Binance after the ban takes effect is probably moving to a country that is not banned, get their documents, and then registering and verifying a fresh account.

Geo-locations will be identified to block people from restricted countries or areas. It is easy to do by Binance and it's not strange, we have it on gambling sites too.

People can easy use VPN to surpass geo-location blocks but because Binance requires KYC, VPN can not help to solve the problems. Leaving to a new country to live just because you want to use Binance is unrealistic and you don't know what nations will be restricted by Binance in future.

You may access the platform until they seize your funds indefinitely and if you don't want to see that happen then stop bypassing the restrictions. The users will have certain time period to withdraw their funds from the platform and also they will give about the termination of service like notice via mail or even in the main page so it means they will have adequate time to take their money out.

Oh look another place they couldn't or wouldn't get a license.

Here's a hint for the people still using Binance.

Run as fast as you can.

They're slowly but surely leaving parts of the world that require some sort of proof that you're not running a scam outfit. As more people want proof that they're doing shady things, they seem to be bailing from those jurisdictions. If it was just one or two countries or regions that they were leaving or being forced out of or being sued in you could say it was just that one particular country or region or whatever. With them having to stop operations in so many places you really can't at this point still think that there's not something funky going on behind the scenes there.

-Dave

The number of countries is narrowing day by day, which may affect the continuity of their profits, or at least it will not be the same as it was in 2020, which means that Binance may be replaced during the next few years to be the platform despite two or three, or we may not return for a while to have a dominant platform over all The market, but the first platform for each geographical area.

looking for an alternative if Binance is still working well in your country.

They also fail in Singapore I don't remember when but the Binance Singapore is already gone all trading will be banned if we access using singapore IP address.

And also Binance is already banned by "The Ministry of Communication and Informatics" of Indonesia because dont have a license there but Binance buy indonesia crypto exchange tokocrypto

it seems they fail in majority of country but I think they will not stop there

Again, no surprise. This has been a pattern for Binance. Theirs is like a hit-and-run business. Binance has this penchant to operate illegally. If caught and called out, they try to register, probably just to somehow appease the authorities, to make it appear that it isn't their intention to stay illegal and exploit the market without paying anything in return. They submit probably haphazard applications which are expected to be rejected. And then they leave.

In fairness to them, however, they seem to be making new grounds as much as they are losing old ones. I'm in awe of CZ's sneaky business skills.

Things are getting worse on Binance and it is about to leave more countries, all EU countries are sure to follow the Netherlands in this ban.

Although the Binance case in the United States has not ended yet, its impact seemed to appear immediately. It is certain that more countries will impose more restrictions on Binance, so I do not know what will be the impact of this case on Crypto in general?

Although it seems to be bad news in its general form, but given the dominance of Binance in the crypto market, I expect that its effect will be good in the long run to get rid of centralization.

Does changing location mean to using Binance again, even though Binance has failed to provide some necessary details to make sure your assets are safe?

Since the time Binance and the US SEC started having issues, I have advised anyone close to me to avoid the exchange for now until all the cases are resolved.

That is why centralized exchanges should be avoided at all costs.

Binance has gained global credibility, and no one will ever anticipate them to operate in this manner again. They are now failing to meet several countries' regulatory criteria. That is, trust is a problem in cryptocurrencies; thus, trust no one with your bitcoin; keep it in your wallet, and you will be in charge.

Isn't it EToro and Bybit operates in Netherlands? And they even have their own local exchanges which is Bitvavo?

So I'm just wondering if other exchanges local or foreign can operate inside the Netherlands then why there is a issue on giving Binance the regulatory approval? I'm not pro-Binance, but I'm just curious as who's fault it is? Or just the government of Dutch is really hard bent on giving Binance the thumbs up? Or it is about CZ not wanting to go because he doesn't like what he is seeing on papers regarding regulations?

I don't think they even try to register locally though. The ban is also easy to bypass the last time I checked, with a DNS or even alternative link we can access Binance with no problems. I don't know if the government is just lazy or they made a deal on the background since they allow Binance to acquire one of the local exchanges with no notable problems. CMIIW.

Yeah as far as I know Tokocrypto itself is using Binance Cloud or using the framework from Binance. and we can easily bypass the website by using DNS change or VPN and binance global still accepts Indonesian ID for the registration.

And yes last time news said that binance is buy the tokocrypto stock "private placement" and the transaction went smoothly and they change the CEO.

In my opinion is Binance take the shortcut - buying the tokocrypto to acquire the local license without waiting longer process

Yep, but I think the much larger issue is what the AML requirements are and what any crypto exchange (not just Binance) has to do to fulfill them.  I have no idea what kind of regulations the Netherlands has in place, but I'm guessing the problem Binance has is all of the de-fi and staking offerings and maybe something with KYC compliance. 

In the beginning, we had bitcoin and the unregulated Wild West--most of which I missed--and now it seems like all of those concerns about governments being able to shut down bitcoin that had so many threads devoted to them are resurfacing.  And man....it's true that no government can shut down the bitcoin network, if using it is made illegal (and that could happen) then that can be done in an indirect way.

But I'm hopeful attitudes can change.  We've made it this far without severe regulation, which is no small achievement--13 years or thereabouts.  I'm keeping my fingers crossed that Binance can exert some influence and stay in business.

What I don't get, and it could fully be because I am an idiot, but beyond everything else The Netherlands is part of the EU I was always under the impression that they all more or less followed the same banking / KYC / AML laws with only some very minor variations. So am I wrong on that or it there another thing going on here. I'm in the US so I don't know all the ins and outs of EU banking.

However, as I have said, if so many other places can do it and you can't, it's probably you....

-Dave

I am from EU (Croatia) and I also thought that we follow more of less the same laws because some services like crypto debit cards are usually available in all EU countries. Having said that, looks like last year Spian gave Binance the very same VASP license that Netherland denied and that caused Binance leaving the country  so it looks like each country has its own standards.

The only reason that makes sense in my head is because in order for an entity to obtain a VASP license they need to comply not only with European laws (established in the recent 5MLD directive[1]) but also with the national legislation that each country has regarding them. On the latter part, Netherlands regulatory body  - De Nederlandsche Bank (DNB) - probably has more tighter requirements than Spain and Binance chose not to apply/follow them (albeit there are already some companies granted a VASP license by DNB that you can check here[2]). If you're interested you can see an explanation from DNB regarding the information that Binance had to submit in order to be evaluated for a VASP license[3]. For Spain the information is a bit more loose but you also have documentation on these websites[4][5] at least.

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[1]https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018L0843 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32018L0843)
[2]https://www.dnb.nl/en/public-register/register-of-crypto-service-providers/?p=1&l=10&rc=V1dGVEFD (https://www.dnb.nl/en/public-register/register-of-crypto-service-providers/?p=1&l=10&rc=V1dGVEFD)
[3]https://www.dnb.nl/media/cz3fjb4f/explanatory-notes-to-the-form-for-registration-as-a-crypto-service-provider.pdf (https://www.dnb.nl/media/cz3fjb4f/explanatory-notes-to-the-form-for-registration-as-a-crypto-service-provider.pdf)
[4]https://www.garrigues.com/en_GB/new/bank-spains-new-register-virtual-currency-exchange-and-custodian-wallet-providers-now-fully-and (https://www.garrigues.com/en_GB/new/bank-spains-new-register-virtual-currency-exchange-and-custodian-wallet-providers-now-fully-and)
[5]https://sedeelectronica.bde.es/sede/es/menu/tramites/autorizaciones-de-entidades-de-credito-y-otros/registro-de-proveedores-de-servicios-de-cambio-de-moneda-virtual-por-moneda-fiduciaria-y-de-custodia-de-monederos-electronicos.html (https://sedeelectronica.bde.es/sede/es/menu/tramites/autorizaciones-de-entidades-de-credito-y-otros/registro-de-proveedores-de-servicios-de-cambio-de-moneda-virtual-por-moneda-fiduciaria-y-de-custodia-de-monederos-electronicos.html) -> Foreign (Spanish)

Their whole EU market might vanish later on, when following the same "standard" regulatory laws regarding cryptocurrency. This might effect on all exchanges on different countries which most government want — to keep cryptocurrency away on their market in which i don't get, when they can benefit all the taxes of their countrymen.

So Canada gone, US pretty much is a wrap and now we have the Netherlands joining the list were Binance is pulling out..

Is it possible that a competitor could be behind this persuading regulators by pressing Binances  buttons to shake them up and leave the markets for others??

And how is it like with other exchanges, is it business as usual or they are facing the same regulatory pressure??

And in a few month's from now, are we going to survive without centralized exchange's??? Because truth be told, these guys provide more liquidity than a Dex would and pricing is far much better too...

It's the same for other exchangers Kucoin, Huobi, Bybit and others.

https://www.coindesk.com/policy/2021/06/28/huobi-reveals-countries-where-it-has-halted-derivatives-trading/
https://www.coindesk.com/business/2022/06/22/ontario-securities-commission-slaps-bybit-and-kucoin-with-enforcement-actions/

I'm not going to provide all the links of the articles that I have read since you can just google it each countries that have been banning from western to asian countries.
Times are changing because there are new local cryptocurrency exchangers that are operating which are complying with regulations while Binance, Kucoin, Huobi are not for them it's kinda unfair.

But they didn't quite give up without building relationships with confidants in each country.

Among the top exchange founders I've only seen a lot of active CZ traveling around the world, so I wouldn't be surprised if Binance was always a few steps ahead. They spread their partnership wings to several local exchanges^[1] (where it is difficult to reach legal agreements), so that they will better adapt regulation to the "special brand". I'm not sure if the local exchange deserves to be called Binance mask over partners.


1. https://www.binance.com/en/legal/licenses

I guess these guys days  are numbered when it comes to centralized  exchange's operating borderless which is a good and bad thing...

I can only imagine how many local exchanges  will come out of this,a and possibly exploit their customers thanks to fewer exchanges  to choose from.

Looks like a cooperate war disguised as a regulatory clean up, let's see how this unfold going forward.

Another jurisdiction bites the dust. I reckon once enough exchanges have been expelled from many jurisdictions with traders having nowhere to go, it is possible that much of them will begin trading through DEX and DeFi which will increase the amount of liquidity and volume in these markets.

If DEX and DeFi popularity surpasses centralized exchanges popularity, what also might occur is instead of waiting and speculating for the Binance listing pump, it will be the Uniswap whitelisting pump hehe.

I woulnd't bet on DEXes taking big chunk of CEX volume anytime soon, even with all these regularoty issues big exchanges are having.

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Problems for Binance go on, as Belgium regulators orded Binance to stop offering all services to their citizens. Interesting times ahead.

Source https://www.reuters.com/article/idUSFWN38F13H