On the 16th of June, Binance announced that they are leaving the Dutch market with immediate effect. From the 17th of July, Dutch residents will no longer be able to deposit funds and trade on the exchange. Users will only be able to withdraw their outstanding balances. The reason Binance is leaving the Dutch market has to do with a virtual asset service provider (VASP) application. An entity that engages in financial activities involving virtual assets, such as exchanges, needs to be registered as VASP at the regulatory body of that jurisdiction. After months of comprehensive registration application, De Nederlandsche Bank (DNB) has decided to reject Binance’s application.
We understand that there are some questions about Binance leaving the market as we have stated frequently that we use the services of Binance. However, we want to emphasize that the Hodl Funds are unaffected by Binance's exit, and our operations will continue seamlessly. As part of Hodl’s recent international expansion, we are registered and regulated in various countries, including Gibraltar. The legal regulated body in Gibraltar is the arm of the organization that executes transactions, ensuring our operations will continue as they have before. We would like to highlight that although the departure of Binance is unfortunate, the Hodl Funds utilize a wide range of exchanges and most of our holdings are securely stored outside exchanges and similar platforms in cold storage.
In case you are a private user of Binance, we highly recommend withdrawing your assets from the exchange as soon as possible. You can keep the assets in another wallet, preferably a cold storage hardware ledger. It is also possible to convert your holdings on Binance into (additional) participations in one of our funds. In case you would like to make use of this option, please reach out to us via [email protected] or +31 85 060 7077. Our colleagues are happy to guide you through the process.
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