Gemini, a leading crypto exchange based in New York, has announced that it is suspending its services in the Netherlands due to the requirements imposed by the Dutch central bank. Gemini says that it hopes to return to the Dutch market after complying with the new EU rules on crypto assets.
The Dutch central bank, the De Nederlandsche Bank (DNB), has been enforcing a registration regime for crypto service providers since May 2020.
The DNB requires crypto service providers to comply with anti-money laundering and counter-terrorism financing rules and demonstrate adequate governance and operational controls.
In a letter sent to its Dutch users on Sept. 26, Gemini said that it was unable to meet the DNB’s requirements and that it had to cease its operations in the Netherlands by Nov. 17.
Gemini asked its users to withdraw their funds or transfer them to another wallet address before that date. The crypto exchange suggested that users could transfer their funds to Bitvavo, a local crypto exchange that is registered with the DNB.
Gemini’s co-founder and CEO, Tyler Winklevoss reportedly said in a tweet that he was disappointed by the decision and that he hoped to be back in the Netherlands soon. He also thanked the Dutch users for their support and trust
Gemini’s Strategy to Re-enter the Dutch Market Under MiCA
Gemini said that it was committed to working collaboratively with regulators worldwide and focused on getting its 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).
The proposal will apply directly to all EU member states without the need for national transposition.
MiCA will also allow for passporting rights for crypto service providers across the EU.
Gemini is not the only crypto exchange that has left or plans to leave the Netherlands due to regulatory pressure.
Binance, the world’s largest crypto exchange, also announced in July 2021 that it would stop offering its services in the Netherlands.
Binance said that it was working with local regulators and authorities to ensure compliance with MiCA.
