In a strategic move, New York-based cryptocurrency exchange Gemini has announced its decision to halt operations in the Netherlands by mid-November. The company attributes this decision to its inability to meet the regulatory requirements set by the De Nederlandsche Bank (DNB). However, Gemini has expressed its intent to return to the Dutch market after achieving full compliance with the new rules governing crypto assets under the Markets in Crypto-Assets regulations (MiCA).
User Advisory: Prepare for Account Suspension
In a letter addressed to its Dutch users on September 26, Gemini requested them to either withdraw their assets or transfer them to another wallet address. The cryptocurrency platform has set November 17 as the deadline for suspending its operations in the Netherlands, citing regulatory requirements as the primary reason for this move. Gemini has urged its users to ensure that their accounts are empty of any balance by the specified date.
Bitvavo Suggested as an Alternative
Gemini has provided an alternative solution for its Dutch users by suggesting that they transfer their funds to Bitvavo, a local cryptocurrency exchange registered with the DNB. Bitvavo, established in 2018 and headquartered in Amsterdam, is a member of the Dutch Association of Bitcoin Companies. Gemini has expressed its commitment to re-enter the Dutch market once it has successfully aligned its business operations with the regulatory framework outlined in MiCA.
Gemini Following Binance’s Footsteps
Gemini’s decision to withdraw from the Dutch market follows a similar move by cryptocurrency giant Binance earlier in the summer of 2023. Binance also suspended its operations in the Netherlands due to its failure to obtain regulatory approval from the DNB. At the time, DNB press officer Tobias Oudejans hinted at the possibility of Binance returning to the Dutch market by complying with MiCA, which aims to standardize crypto company requirements across the European Union.
Current Landscape of Registered Providers
Presently, there are 37 registered virtual asset providers with the DNB, including industry players such as eToro, Coinbase, Crypto.com, and BitPay. The evolving regulatory environment in the Netherlands underscores the increasing scrutiny and demands placed on cryptocurrency exchanges and service providers to ensure compliance with the latest regulatory frameworks.