Binance, the world’s largest cryptocurrency exchange, is facing a fine in the Netherlands after failing to reach an agreement to operate in the country.
De Nederlandsche Bank has issued a fine of 3.3 million euros (about 3.35 million USD) for providing services related to cryptocurrencies while not registered with local authorities. De Nederlandsche Bank imposed the penalty in April 2022.
The DNB has pointed out that crypto companies in the Netherlands are required to register with the central bank and follow the Anti-Money Laundering and Terrorist Financing provisions. Regulators also mentioned that DNB issued a warning against Binance exchange on August 18, 2021.
According to the announcement, DNB has imposed a higher penalty on Binance due to the large trading volume on the platform.
“BINANCE HAS A LOT OF USERS IN NETHERLANDS AND TRADING VOLUME TAKES 13.7 BILLION USD,” said the MANAGER IN THIS COUNTRY.
The increase in the penalty is attributed to a prolonged breach by Binance. According to DNB, this practice began in May 2020 when the agency introduced an obligation to register with crypto businesses.
The central bank said that Binance has submitted an application and the process is being worked out. Because the exchange complies with the law and is transparent about its business activities. DNB decided to reduce the penalty by 5% compared to the previous notice.
A representative from the exchange said that the company has reached important milestones in achieving requirements from the Dutch authorities through a third party. This event has been long awaited in cooperation with the Dutch central bank.
“Though WE DON’T SHARE THE SAME VIEW ON ONE PROBLEM, WE ARE RESPECTING THE OFFICIAL OFFICERS AND THEIR PROFESSIONAL IN THE PROCESS OF BUILDING THE RIGHT REGULATIONS, WITH DANCE.” .
