Binance fined $3 million over illegal operations in the Netherlands
Binance, a popular crypto exchange, is facing a fine in the Netherlands after failing to secure regulatory clearance to conduct business there
By Shashank Bhardwaj
Image: Shutterstock
Binance Holdings has been fined $3.35 million by the Dutch central bank (DNB) for providing local crypto services without being registered with the central bank. The Dutch regulator declared on Monday that it issued the administrative fine in April 2022.
The DNB emphasised that every business providing crypto services in Netherlands must register with the central bank to comply with the provisions of the Money Laundering and Terrorist Financing Prevention Act. The regulator stated that on August 18, 2021, the DNB had already issued a public warning to Binance.
DNB claimed that In the Netherlands, Binance catered to a "very large number of customers," and its daily trading volume was "$13.7 billion.” According to the DNB, Binance's repeatedly violating the prescribed rules contributed to the increased fine. The bank claims that the infractions occurred between May 2020, when the DNB established the registration obligation, and December 2021, when the bank declared the inquiry complete. The regulator stated, "DNB, therefore, considers these infractions to be quite serious."
Binance has applied to register, and the registration process is now being addressed. The notice stated that the DNB reduced the total payable fine by 5 percent since Binance has taken steps to comply with the law and has been open about its business operations.
So far, the firm has achieved a significant milestone in complying with Dutch regulatory standards through a locally based organisation, Binance Nederland BV. The occasion signals a long-awaited turning point in both the firm's expanding interaction with international regulators and Binance’s continued partnership with the Dutch central bank, the spokesman said, adding:
"While we do not share the same view on every aspect of the decision, we deeply respect the authority and professionalism of Dutch regulators to enforce regulations as they see fit. With this now behind us, we can continue pursuing a more traditional operating model in the Netherlands."
Binance has not explicitly acknowledged or denied that the company had paid the fine yet. Binance reportedly objected to the fee on June 2, 2022, as per the announcement.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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