Dutch Central Bank Fines Crypto Exchange Binance $3.4 Million Citing ‘Very Serious’ Violations – De Nederlandsche Bank (DNB), the Dutch central bank, announced on Monday that Binance Holdings Ltd. has been fined for providing crypto services without registering as required by law. The DNB stated that the administrative fee of 3.325 million euros (or $3.4 million) was levied on the cryptocurrency exchange.
Elaborating that:
“The fine was imposed because Binance offered crypto services in the Netherlands without a legally required registration with DNB. That’s prohibited.”
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The Money Laundering and Terrorist Financing (Prevention) Act requires businesses that wish to provide crypto services in the Netherlands to register with the central bank. This was stressed by the central bank. In May 2020, a registration requirement for crypto service providers was introduced.
According to the DNB, Binance received a category three fine, the highest level of enforcement available from the central bank, “owing to the gravity and degree of responsibility of the noncompliance.” The regulator emphasized that the DNB views Binance’s “violations to be very serious” and mentioned that the breach occurred over a prolonged period, from May 2020 until at least December 2021.
The DNB continued by stating that it also considered Binance’s “very substantial customer base in the Netherlands.” The cryptocurrency exchange, according to the central bank, appealed against the fine on June 2.
In the moment, Binance has requested registration with the Dutch central bank. The monetary authority stated: “Throughout the entire process, Binance has been relatively transparent regarding its business operations.”
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The penalty levied on Binance was lowered by 5% as a result of the registration filing and transparency, according to the central bank. The cryptocurrency exchange is still growing its position in Europe. Last week, the Bank of Spain granted it a license. Last month, Binance also unveiled a brand-new platform for institutional and VIP crypto investors.
