Express
Binance Fined $3.3M by Dutch Central Bank for Illegally Operating in the Country
Summary: Binance has been fined €3.3 million ($3.35 million) by the Dutch central bank for illegally offering crypto services without the necessary registration, according to a release Monday. The De Nederlandsche Bank (DNB), or the central bank of the Netherlands, said in the release that companies offering cryptocurrency services in the Netherlands must register with the ...
Binance has been fined €3.3 million ($3.35 million) by the Dutch central bank for illegally offering crypto services without the necessary registration, according to a release Monday.
The De Nederlandsche Bank (DNB), or the central bank of the Netherlands, said in the release that companies offering cryptocurrency services in the Netherlands must register with the DNB under the Money Laundering and Terrorist Finance Prevention Act, which was introduced in May 2020.
The DNB noted that Binance, led by founder and CEO Changpeng “CZ” Zhao, failed to do so, giving them an unfair competitive advantage among creating other regulatory issues. As a result the DNB has fined them more than the €2 million “basic amount” citing the “seriousness and culpability” of the infringement.
Furthermore the DNB emphasized that because Binance is the largest crypto services provider in the world with a daily volume of $13.7 billion, holds a large customer base in the Netherlands and committed the violations from May 2022 through December 2021, the fine was increased from the basic amount. According to the release, the fine could have been anywhere from zero USD to $4 million.
However, Binance wasn’t totally blindsided with this fine, as they were warned last August by the DNB they were violating banking regulations within the country.
Since the fine was given to Binance, it has been moderately reduced by 5% partly because a registration has been submitted by the Cayman Islands-headquartered company. It has also been fairly transparent about its business operations throughout this process with the DNB.
“Today’s decision marks a long-awaited pivot in our ongoing collaboration with the Dutch central bank," said a Binance spokesperson, reported by The Block. "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."
Author: Tyler Irvin
Tags: Binance,Changpeng Zhao,Dutch Central Bank,Netherlands
Link: Binance Fined $3.3M by Dutch Central Bank for Illegally Operating in the Country [Copy]
