Dutch Central Bank Imposes $3.3 Million Fine on Binance Crypto Exchange

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De Nederlandsche Bank (DNB) has fined cryptocurrency exchange Binance €3.3 million ($3.35 million) for offering services in the Netherlands without the proper license.

In a statement released on Monday, the regulator said that violations committed by Binance are punishable by a third category fine, which means that the administrative fine has a base amount of 2 million euros (2.03 million of dollars).

For Binance, however, this base amount has been increased, with DNB citing several reasons for such a move.

One of the reasons, according to DNB, is that Binance is not only the largest crypto service provider in the world, but also has a very large number of customers in the country.

“In addition, Binance enjoyed a competitive advantage as it paid no levies to DNB and incurred no other costs related to DNB’s ongoing monitoring,” reads a translated version of the statement.

The Dutch Central Bank has required Virtual Asset Service Providers (VASPs) to be registered under the Anti-Money Laundering and Anti-Terrorist Financing Act since May 21, 2020.

The regulator said Binance violated registration rules from at least May 21, 2020 until December 1, 2021, when DNB completed its investigation into the matter.

According to the DNB, this is another important reason for increasing the fine as it considers these violations to be very serious.

Binance opposes the fine

DNB warned Binance to operate in the Netherlands without the required legal registration in August 2021, saying that breaching the legislation “could increase the risk of customers being involved in money laundering or terrorist financing” .

In today’s statement, however, the regulator said it had moderated the 5% fine, in part because Binance has already submitted a registration application – which is currently under review – and because the exchange has been “relatively transparent about its operations throughout the process.”

DNB added that the fine was issued on April 25, with Binance objecting to it on June 2.

Besides today’s news, the crypto exchange has been making steady inroads in Europe

Last week, Binance announced that its Spanish subsidiary, Moon Tech Spain, was registered with the Bank of Spain as a VASP.

In May this year, France and Italy also authorized the crypto exchange as an official digital asset provider.

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