Gemini Ceases Operations in the Netherlands
New York-based cryptocurrency exchange Gemini has announced its decision to halt operations in the Netherlands, following regulatory requirements that it couldn’t meet. The suspension of services in the Netherlands is scheduled for November 17, 2023, and users are urged to take necessary actions regarding their account balances.
The decision, prompted by requirements imposed by the De Nederlandsche Bank (DNB), signifies Gemini’s commitment to regulatory compliance, even if it means temporarily exiting the Dutch market. In a letter addressed to Dutch users, Gemini emphasizes the importance of emptying their accounts by the specified date:
“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.”
To facilitate the transition for its Dutch user base, Gemini suggests the option of transferring funds to Bitvavo, a local crypto exchange that is registered with the DNB. This recommendation aims to provide users with a trusted alternative to continue their cryptocurrency activities.
Gemini’s decision to cease operations in the Netherlands aligns with a broader trend in the crypto industry. Earlier in 2023, Binance, another major player in the crypto exchange space, also withdrew its services from the Dutch market due to regulatory hurdles.
However, Gemini intends to return to the Dutch market once it has made the necessary adjustments to ensure full compliance with the new rules governing crypto assets. These rules are outlined in the Markets in Crypto-Assets Regulation (MiCA), a European Union framework designed to standardize regulatory requirements for crypto companies across the EU.
Currently, there are 37 virtual asset providers registered with the DNB, including well-known platforms like eToro, Coinbase, Crypto.com, and BitPay. This indicates that while regulatory compliance is a challenge, it is not insurmountable, and many crypto exchanges are actively working to meet these evolving standards.
In conclusion, Gemini’s decision to temporarily withdraw from the Netherlands underscores the dynamic regulatory environment in the crypto industry and the importance of adhering to evolving compliance requirements. As the crypto landscape continues to evolve, exchanges must adapt to regulatory changes to ensure the long-term sustainability of their operations.