Cryptocurrency exchange Binance fined by the Dutch central bank
The logo of the cryptocurrency exchange Binance is displayed on a smartphone with stock market percentages in the background.
Omar Marques | SOPA pictures | LightRocket via Getty Images
Binance, the world’s largest cryptocurrency exchange, was fined 3.3 million euros ($ 3.4 million) by the Dutch central bank on Monday for operating in the Netherlands without registration.
The punishment came after a warning in August 2021 from De Nederlandsche Bank (DNB) last year that Binance had offered crypto services in the country without authorization.
The company was fined in category 3 – the strictest of DNB’s three enforcement levels. The charge reached the upper limit of 2 million euros to 4 million euros the maximum the bank can impose “due to the seriousness and degree of guilt in the default”, DNB said in a statement.
The breach took place over a “long period”, said the central bank, which extends from 21 May 2020 to at least 1 December 2021. “This is the reason why DNB considers the deviation to be very serious,” says the regulator. so.
DNB said they also took into account Binance’s size and “very significant customer base in the Netherlands.” The company is the largest crypto exchange globally, with daily spot trading volumes of $ 15.5 billion, according to CoinGecko data.
Binance appealed the fine on June 2, DNB informs.
A spokesman for Binance said the company hopes to put the dispute behind it while pursuing its Dutch license.
“Today’s decision marks a long-awaited turning point in our ongoing cooperation with the Dutch central bank,” the spokesman said via e-mail.
“Although we do not share the same view on all aspects of the decision, we deeply respect the authority and professionalism of Dutch regulators to enforce regulations that they deem appropriate.”
The development goes across Binance’s recent change of tone around peace with global regulators. Binance previously operated largely outside the law, with CEO Changpeng Zhao often boasting of having no official global headquarters.
It has since tried to become a friend instead of an enemy of regulators – especially in Europe, where it has secured licenses in France, Italy and Spain.
The Dutch fine was moderated 5% lower because Binance applied for registration and was “relatively transparent” about the operation during the process, DNB said. The central bank says that it is still considering Binance’s application.
