Crypto Exchange Gemini to Temporarily Depart Netherlands, Citing Regulatory Challenges
Summary:
New York-based crypto exchange Gemini has announced its decision to leave the Netherlands, citing failure to meet local regulatory requirements. In a letter to Dutch users, the company asked them to transfer or withdraw their assets by November 17, 2023, when it will suspend its operations in the country. Despite this, Gemini plans to re-enter the Dutch market once it is fully compliant with the Markets in Crypto-Assets Regulation (MiCA). This move mirrors that of another crypto giant, Binance, which also halted operations in the Netherlands.
The crypto exchange Gemini, based in New York, has elected to withdraw from the Netherlands, a move mirroring that of the Bitcoin behemoth, Binance. Citing failure to satisfy regulatory demands as the reason, Gemini insisted it plans on coming back to the Dutch marketplace. Gemini informed their Dutch users about this decision on September 26, asking them to withdraw their holdings or relocate them to an alternate wallet. It communicated that by November 17, its operations in the Netherlands will be suspended due to obligations enforced by the De Nederlandsche Bank (DNB) on crypto exchange platforms. Gemini has asked customers to clear their accounts, leaving no remaining balance by November 17, 2023. To facilitate this, Gemini advised users to relocate their assets to the local crypto exchange Bitvavo, which is registered with the DNB. Bitvavo, an Amsterdam-based exchange, was initially launched in 2018 and is part of the Dutch Association of Bitcoin Companies. Despite its temporary departure, Gemini intends to re-enter the Dutch market after aligning its operations with new mandates set around crypto-assets in the Markets in Crypto-Assets Regulation (MiCA). Binance, a primary global competition for Gemini, withdrew their operations from the Netherlands in the summer of 2023, due to its inability to acquire approval from the DNB. A DNB spokesperson, Tobias Oudejans, noted that Binance following MiCA's requirements could enable it to regain space in the Dutch market. According to Oudejans, the European Union may offer entry to the Dutch market to registered establishments from other EU countries by bringing MiCA into effect. At present, the DNB has registered 37 virtual asset providers, including eToro, Coinbase, Crypto.com, and BitPay.
Published At
9/29/2023 9:35:15 AM
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