• Binance has been fined $3 million for illegal operations in the Netherlands

  • According to the Dutch central bank, the Binance cryptocurrency exchange has a “particularly substantial number of consumers in the Netherlands.”

    Binance, a major global cryptocurrency exchange, is facing a fine in the Netherlands for failing to secure regulatory clearance to operate there.

    The Dutch central bank (DNB) fined Binance Holdings 3.3 million euros ($3.35 million) for providing local crypto services without being registered with the regulator. The Dutch central bank stated on Monday that the administrative penalties will be enforced in April 2022.

    According to the DNB, any company offering crypto services in the Netherlands must register with the central bank in order to comply with the Money Laundering and Terrorist Financing Prevention Act. The regulator also stated that on August 18, 2021, the DNB issued a public notice to Binance.

    The DNB imposed a larger penalty on Binance due to the platform’s high trade volumes, according to the notice. Binance has a “particularly big number of consumers in the Netherlands,” according to the regulator, and its daily trading volumes totaled “$13.7 billion.”

    According to the DNB, the higher penalty was also due to Binance’s repeated infractions. According to the bank, the infractions happened between May 2020, when the DNB implemented the registration requirement, and December 2021, when the bank finished the inquiry. “As a result, DNB considers these infractions to be quite serious,” the regulator stated.

    The central bank also stated that Binance has submitted a registration application, and that the registration procedure is now being addressed. The DNB decreased the total amount of the fine by 5% because the exchange moved to comply with the law and was transparent about its business operations, according to the notice.

    According to a spokesman for Binance, the business has accomplished a major milestone in meeting Dutch regulatory standards through a locally incorporated organization, Binance Nederland BV. The occasion represents a long-awaited turning point in our continuous relationship with the Dutch central bank, as well as the firm’s growing involvement with worldwide regulators, according to the spokesman.

    “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.”

    So yet, Binance has not directly acknowledged or denied paying the fee. Binance filed an objection to the fine on June 2, 2022, according to the notification.

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