On June 18, 2021, the leading cryptocurrency exchange, Binance, issued a statement saying that it is temporarily halting deposits made in euros through iDeal.
Reasons for the decision
It is not clear what is behind the exchange’s decision. However, it appears from the message that deposits of funds through iDeal for the purchase of cryptocurrencies, are only halted, not suspended completely. Therefore, this could indicate technical issues potentially faced by one of the parties.
However, there are some theories emerging that suggest the issue is a bit more complex. The Binance exchange has recently been having regulatory problems in countries such as Japan. It is possible that it encountered similar ones in the Netherlands, where iDeal mainly operates. A week before the announcement of this specific restriction, there was a lot of talk about the words spoken by the head of the government’s Central Planning Bureau there. Pieter Hasekamp expressed his concern towards cryptocurrencies, making it clear that they should be fully banned. In his view, crypto products have no intrinsic value and derive their power solely from the approval and speculation of the people gathered around them.
This theory, derived from potentially formative links, seems interesting to say the least. However, it cannot be said with certainty that its effect is due to the restrictions put in place by Binance.
Who is affected by the restrictions and what are the alternatives
iDeal is a financial intermediary that is very popular in the Netherlands. It also gets its origin from there. Binance is also one of the most popular exchanges in this region of Europe. The confusion around iDeal causes considerable difficulties for the local investors. The exchange however reassures, indicating that other forms of payment remain unchanged. Therefore, one can order a SEPA transfer, which will enable further trading on the platform. It is also possible to purchase crypto using a debit or credit card.
Binance’s decision is so disappointing that some Dutch investors are turning their attention to their home exchange. Bitvavo in question boasts a friendly environment for both beginners and as well as advanced traders. The exchange also provides token staking options. Bitvavo is also compliant with international requirements for such platforms. According to many observers, it is likely to become one of the market leaders in Europe. Whether this will be the case remains to be seen. Undoubtedly, it is now facing the possibility of grabbing more of the Dutch market, as Bitvavo’s partnership with iDeal is still ongoing and looks to be doing well.