Austria-based cryptocurrency exchange Bitpanda has decided to withdraw its services from the Netherlands, effective February 1, 2024, after failing to receive regulatory approval. This move, detailed in a recent email from the company, is in response to regulatory requirements in the country.
Bitpanda will no longer accept new users who reside in the Netherlands, while existing users will only be able to withdraw assets from the platform, with no further purchases, trades or deposits permitted.
Despite having over 4 million users across Europe and holding 12 European licenses and registrations, Bitpanda is not registered with De Nederlandsche Bank (DNB), the central bank of the Netherlands.
To assist its Dutch customers with the transition, Bitpanda is advising them to transfer their cryptocurrencies to Bitvavo, which is serving around 1.5 million customers in the Benelux region. The latter, founded in 2018 and based in Amsterdam, is a member of the Dutch Association of Bitcoin Companies, which means that it operates in compliance with Dutch regulatory requirements. Bitvavo is currently offering a €10 bonus for new users, which could be an added incentive for those transitioning from Bitpanda.
The Netherlands, a member of the European Union, is part of a trading bloc that recently passed the Markets in Crypto Asset (MiCA) legislation. This EU-wide regulation allows companies to obtain a single license in one EU country and then operate across the entire union.
Bitpanda’s exit comes a few months after Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, ceased providing services to customers in the Netherlands, citing regulatory requirements imposed by the country’s central bank.
Nevertheless, Gemini said it intends to re-enter the Dutch market after it manages to align its operations with the new regulatory guidelines for crypto assets as outlined in the Markets in Crypto-Assets regulations (MiCA).
Rival exchange Binance also exited the Netherlands in June following the rejection of its application to register under the Dutch crypto authorization regime. Citing the inability to obtain registration as a virtual asset service provider (VASP) with the Dutch regulator, Binance said it would no longer be able to serve clients from the country.
Earlier in 2023, Bitpanda divided into two separate companies. The company’s cryptocurrency exchange, Bitpanda Pro, has become an independent entity known as One Trading.
By splitting into two distinct companies, Bitpanda aims to further focus on the development and growth of its cryptocurrency exchange, Bitpanda Pro. This strategic move, accompanied by decent funding, is said to upgrade the capabilities and offerings of One Trading in the cryptocurrency market.