The Dutch central bank has fined cryptocurrency exchange Binance 3.325 million euros for offering crypto services in the Netherlands without the legally required registration. Binance has appealed against the fine and has now submitted an application to register with the central bank.
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Binance Fined by Dutch Regulator
The Dutch central bank, De Nederlandsche Bank (DNB), revealed Monday that it has fined Binance Holdings Ltd. for offering crypto services without registration as required by law.
The administrative fine of 3.325 million euros ($3.4 million) was imposed on the cryptocurrency exchange on April 25, the DNB said, elaborating:
The fine was imposed because Binance offered crypto services in the Netherlands without a legally required registration with DNB. That’s prohibited.
The central bank stressed that companies wanting to offer crypto services in the Netherlands must register with it as mandated in the Money Laundering and Terrorist Financing (Prevention) Act. The registration requirement for crypto service providers was introduced in May 2020.
Binance was dealt a category three fine, which is the most stringent of the central bank’s levels of enforcement, “due to the gravity and degree of culpability of the noncompliance,” the DNB said. The regulator noted that the breach took place over a “prolonged period,” from May 2020 to at least December 2021, emphasizing that the DNB considers Binance’s “violations to be very serious.”
The DNB further explained that it also took into account Binance’s size and “very substantial customer base in the Netherlands.” However, the crypto exchange filed an appeal against the fine on June 2, the central bank revealed.
Binance has now applied for registration with the Dutch central bank. The monetary authority noted:
Binance has been relatively transparent about its business operations throughout the entire process.
Due to the registration filing and transparency, the fine imposed on Binance was moderated 5% lower, the central bank said.
Meanwhile, the crypto exchange continues to expand its presence in Europe. It received a license from the Bank of Spain last week. Binance also launched a new platform for VIP and institutional crypto investors last month.
What do you think about the Dutch central bank imposing a fine on Binance? Let us know in the comments section below.