New York-based cryptocurrency exchange Gemini has announced its exit from the Dutch market, effective November 17, 2023. The move comes as a response to regulatory requirements imposed by the De Nederlandsche Bank (DNB).
In a statement on its support page, Gemini informed its Dutch customers to withdraw or transfer their crypto and fiat balances by the specified date. Additionally, the company expressed its intent to align its operations with the European Union’s Markets in Crypto-Assets Regulation (MiCA) as a pathway to re-enter the Dutch market.
Following Binance’s footsteps
Significantly, Gemini is not the first crypto exchange to pull out of the Netherlands due to regulatory hurdles. Earlier this summer, crypto behemoth Binance also ceased its operations in the country. At that time, DNB press officer Tobias Oudejans suggested that Binance could potentially return to the Dutch market by complying with MiCA, which aims to standardize the EU’s requirements for crypto companies. Consequently, Gemini’s decision to exit seems to be a strategic move to avoid immediate regulatory complications while preparing for long-term compliance.
The exchange has recommended that its users transfer their funds to Amsterdam-based Bitvavo, a local crypto exchange registered with the DNB. Launched in 2018, Bitvavo is a member of the Dutch Association of Bitcoin Companies and appears to be in good standing with local regulators. Moreover, Gemini’s exit strategy includes plans to make its business “fully compliant” with MiCA regulations, thereby laying the groundwork for its eventual return to the Dutch market.
The Netherlands currently has 37 virtual asset providers registered with the DNB, including industry giants like eToro, Coinbase, Crypto.com, and BitPay. However, the regulatory environment remains a complex landscape for crypto exchange nowadays. The DNB has been stringent in its requirements, leading to the exit of major players like Binance and now Gemini.
