Binance will refer Dutch customers to Coinmerce, a rival crypto exchange as it ceases to operate in the Netherlands. This was revealed by a announcement made on Thursday by Coinmerce.

Binance, the largest crypto exchange in the world, has failed to gain recognition as a provider of virtual assets. However, it has offered to transfer its customers to a rival that has been approved by the central banks to provide crypto exchange and wallet services starting 2020.

Jaap De Bruijn is the chief executive officer at Coinmerce. He said that “our priority is to ensure a smooth transition”. Customers can transfer their digital assets for free to Coinmerce under a process overseen by regulators.

Binance was fined $3.65 million by the Dutch central banks for not having the proper authorization to serve clients in the Netherlands. It announced last month that it would not accept any new customers from the Netherlands. Existing clients will be unable to trade, deposit or buy after 17 July.

Binance’s headquarters in France was raided recently in an investigation into “aggravated” money laundering. The company, and its CEO Changpeng Zhao, have been charged with operating a securities exchange without a license by U.S. authorities.

Binance’s spokesperson confirmed to CoinDesk that it is working on “seamless” transitions for Dutch users, allowing them to move to Coinmerce quickly and securely if they so choose.

The spokesperson stated that “while we are leaving the Dutch Market, Binance remains dedicated to obtaining necessary authorizations in order to reintroduce their products and services in the Netherlands to users in the future.”

Binance will leave the Netherlands after failing to obtain a license

UPDATE (Jul 6, 2023, 12:42 UTC): Adds Binance quote.

Parikshit Miishra is the editor.