Binance cryptocurrency exchange was penalized by the Dutch central banks with a fine of 3.325million euros. This is for selling crypto services to the Netherlands in violation of the law. Binance, which appealed against this fine has submitted an application with the central banking to register.
Dutch Regulator Fines Binance
De Nederlandsche Bank (DNB), the Dutch central banking institution, announced Monday it had fined Binance Holdings Ltd.
On April 25, the DNB imposed a fine administrative of 3.325 Million Euros ($3.4M) on the cryptocurrency exchange.
Binance was operating crypto services in the Netherlands and did not have to register with DNB. That’s prohibited.
As mandated by the Money Laundering and Terrorist Financing Prevention Act (Prevention Act), the central bank stressed the need for companies to register in order to provide crypto services in Netherlands. Crypto service providers must register with the central bank by 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 is now applying for registration at the Dutch central bank. It was noted by the monetary authority:
Binance was transparent throughout this entire process.
According to the central bank, Binance received a 5% reduction in the penalty due to transparency and filing of the required registration documents.
The cryptocurrency exchange is growing in Europe. The Bank of Spain granted it a license last week. Binance launched last month a platform that allows institutional and VIP crypto investors to invest on the same platform.
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