Kevin Helms
An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Dutch central bank fines Crypto Exchange Binance $ 3.4 million for “very serious” breaches – regulation Bitcoin news
The Dutch central bank has fined the cryptocurrency exchange Binance EUR 3.325 million for providing crypto services in the Netherlands without the statutory registration. Binance has appealed the fine and has now submitted an application for registration with the central bank.
Binance fined by Dutch regulator
The Dutch central bank, De Nederlandsche Bank (DNB), revealed on Monday that it has fined Binance Holdings Ltd. to offer crypto services without registration as required by law.
The administrative fine of 3.325 million euros (3.4 million dollars) was imposed on the cryptocurrency exchange on April 25, DNB said and elaborated:
The fine was imposed because Binance offered crypto services in the Netherlands without a statutory registration with DNB. It is prohibited.
The central bank emphasized that companies wishing to offer crypto services in the Netherlands must register with the person required by the Money Laundering and Terrorist Financing (Prevention) Act. The registration requirement for crypto service providers was introduced in May 2020.
Binance was awarded a category three fine, which is the most severe of the central bank’s enforcement levels, “due to the severity and degree of guilt in the discrepancy,” DNB said. The regulator noted that the breach took place over a «long period», from May 2020 to at least December 2021, and emphasized that DNB considers Binance’s breach to be very serious ».
DNB further explained that they also took into account Binance’s size and «very significant customer base in the Netherlands». However, the crypto exchange appealed 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 process.
Due to the registration 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.
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