Key Takeaways:
- Gemini temporarily halts operations in the Netherlands due to regulatory challenges.
- Users must withdraw or transfer assets before Nov. 17, 2023.
- Strict crypto regulations affect major exchanges and their users in the Netherlands.
LUCKNOW (CoinChapter.com) — New York-based cryptocurrency exchange Gemini will discontinue its services in the Netherlands by mid-November.
The exchange cited new regulatory requirements imposed by De Nederlandsche Bank (DNB) as its core reason behind the move, adding that it would return to the market once it gets “fully compliant” with the rules.
“Gemini continues to be committed to working collaboratively with regulators around the world and is focused on getting our business ready to be fully compliant with the new EU rules on crypto-assets, as set out under the Markets in Crypto–Assets Regulation (MiCA), whereby we hope to be able to offer crypto asset services to customers based in the Netherlands in the future,”
Gemini announcement reads.
Gemini requested its customers to either withdraw their assets or transfer them to another wallet address before November 17, 2023.
“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,” the letter says.
For users who want to transfer their assets to another exchange, Gemini has suggested Bitvavo. It’s an Amsterdam- based cryptocurrency exchange registered with the DNB. This firm was launched in 2018 and is also a member of the Dutch Association of Bitcoin Companies.
The Impact of Strict Crypto Regulations
The Netherlands has adopted a strong regulatory framework after Europe enacted new rules outlined under (MiCA).
These strict crypto regulations led many of the major firms to halt their operations in the Netherlands. One of the major crypto exchanges, Binance, discontinued its services in the Netherlands this year as it failed to obtain approval from the DNB.
The closure of two major exchanges within a few months shows the strict crypto regulations that are affecting both the platforms and their users. Currently, 37 virtual asset providers are registered with the DNB. These companies, including eToro, Coinbase, Crypto.com, and BitPay, are operating within the framework of Dutch regulations.
