Crypto.com gains Netherlands approval after Binance exit

Crypto.com announced on July 28 it has secured registration approval from De Nederlandsche Bank (DNB) to provide crypto services in the Netherlands.

This approval follows Binance’s unsuccessful attempt to secure a similar license earlier this year, with Dutch investors advised to move funds before July 17.

Crypto.com granted registration.

The granted registration, which came after an evaluation of Crypto.com’s adherence to the Netherlands’ Money Laundering and Terrorist Financing Prevention Act, may trigger discussions about its potential to reshape the crypto market landscape in the Netherlands.

Crypto.com CEO Kris Marszalek said,

“Crypto.com’s collaboration with regulators is crucial to responsibly advancing the crypto and blockchain industry.”

He further emphasized that the DNB’s approval is a significant milestone and reaffirms its commitment to compliance.

The confirmation of registration with the DNB continues Crypto.com’s trend of gaining regulatory momentum globally. The company has won a slew of licenses and registrations, including a Major Payment Institution (MPI) license from the Monetary Authority of Singapore and a Digital Asset Service Provider (DASP) registration from France’s Autorité des marchés financiers (AMF), contributing to its global credibility.

Binance withdrawals from the country.

Interestingly, this development comes just months after Binance, a leading crypto exchange, announced its withdrawal from the Dutch market due to its failure to secure registration as a virtual asset service provider (VASP).

Despite Binance’s compliance with EU standards in France, Italy, Spain, Poland, Sweden, and Lithuania, the company failed to meet the regulatory requirements in the Netherlands, as reported in June 2023.

Notably, the Netherlands ranks as the most crypto-curious European country according to Dua Crypto’s European Crypto Index. Over 2 million search queries reveal a significant interest in cryptocurrencies among the Dutch population. The approval of Crypto.com’s registration can provide an alternative platform for Dutch residents seeking to engage in the crypto market following Binance’s departure.

Dutch regulatory landscape

However, the Dutch regulatory environment remains complex as the DNB exercises regulatory supervision over crypto service providers, with compliance requirements centered around the Anti-Money Laundering and Anti-Terrorist Financing Act and the Sanctions Act.

However, Crypto.com’s Dutch trading entity, Foris DAX Global Limited, is not subject to “prudential supervision by the DNB,” meaning that financial and operational risks concerning crypto services are not monitored, and there is no specific financial consumer protection.

While the regulatory landscape in the Netherlands remains challenging, the approval of Crypto.com’s registration signals a possible shift.