Binance fined $3 million for illegal operations in the Netherlands
The Dutch central bank said crypto exchange Binance has "a huge number of customers in the Netherlands".
Leading global cryptocurrency exchange Binance faces sanction in the Netherlands after failing to gain regulatory approval to operate in the country.
The Dutch Central Bank (DNB) fined Binance Holdings €3.3 million ($3.3 million) for offering local crypto services without registration with an authority . The Dutch central bank officially announced on Monday that the regulator imposed the administrative fine in April 2022.
The DNB pointed out that any company offering crypto services in the Netherlands is required to register with the central bank in accordance with the Prevention of Money Laundering and Terrorist Financing Act. The regulator also mentioned that DNB previously issued a public warning to Binance on August 18, 2021.
According to the announcement, the DNB applied a larger penalty to Binance due to the platform's high trading volumes. According to the regulator, Binance had "a very large number of customers in the Netherlands", while its daily trading volumes amounted to "13.7 billion dollars".
The increased penalty was also due to prolonged violations by Binance, DNB said. According to the bank, the breaches occurred from May 2020 - when DNB introduced the registration requirement - until the bank closed the investigation in December 2021. "DNB therefore considers these breaches to be very serious" , noted the regulator.
The central bank also mentioned that Binance has submitted an application for registration and the registration process is ongoing. As the exchange has taken steps to comply with the law and been transparent about its trading operations, the DNB has reduced the total amount of the fine by 5%, the announcement notes.
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The Dutch central bank said crypto exchange Binance has "a huge number of customers in the Netherlands".
Leading global cryptocurrency exchange Binance faces sanction in the Netherlands after failing to gain regulatory approval to operate in the country.
The Dutch Central Bank (DNB) fined Binance Holdings €3.3 million ($3.3 million) for offering local crypto services without registration with an authority . The Dutch central bank officially announced on Monday that the regulator imposed the administrative fine in April 2022.
The DNB pointed out that any company offering crypto services in the Netherlands is required to register with the central bank in accordance with the Prevention of Money Laundering and Terrorist Financing Act. The regulator also mentioned that DNB previously issued a public warning to Binance on August 18, 2021.
According to the announcement, the DNB applied a larger penalty to Binance due to the platform's high trading volumes. According to the regulator, Binance had "a very large number of customers in the Netherlands", while its daily trading volumes amounted to "13.7 billion dollars".
The increased penalty was also due to prolonged violations by Binance, DNB said. According to the bank, the breaches occurred from May 2020 - when DNB introduced the registration requirement - until the bank closed the investigation in December 2021. "DNB therefore considers these breaches to be very serious" , noted the regulator.
The central bank also mentioned that Binance has submitted an application for registration and the registration process is ongoing. As the exchange has taken steps to comply with the law and been transparent about its trading operations, the DNB has reduced the total amount of the fine by 5%, the announcement notes.
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