The Dutch central bank (DNB) has revealed imposing the world’s largest cryptocurrency exchange – Binance – an administrative fine of 3.3 million euros ($3.35 million) for offering services in the Netherlands without proper registration.
DNB Fines Binance
According to the report by Reuters, the fine was imposed in April 2022. Prior to this, the central bank had issued a public warning against Binance Holdings Ltd. in August 2021. It claimed that Binance was in non-compliance between at least May 2020 and December 2021.
The central bank also said in a statement that the crypto exchange had recently indicated it would appeal after objecting to the fine. Binance had submitted an application for registration in the Netherlands, which is currently being assessed by the central bank.
Even though Binance’s registration has not been approved, the DNB revealed slashing the originally intended fine by 5%, citing that the company has “been relatively transparent about its operations throughout the process.”
The DNB does not recognize cryptocurrencies as legal tender and has warned about the risks associated with the asset class over the past years. Currently, the central bank regulates the asset class in the Netherlands.
From May 2020, crypto exchange and service providers were required to register with De Nederlandsche Bank. The current regulations are solely centered around anti-money laundering and countering the financing of terrorism (AML/CFT). However, it has expressed a positive attitude toward central bank digital currencies, including Digital Euro.
Off late, Binance has gained approval from regulators across the world despite significant hurdles in 2021 over its sprawling operations. It has doubled down on compliance this year, which has helped the exchange to receive a Virtual Asset License from the Virtual Asset Regulatory Authority in Dubai.
Binance was granted a Category 4 license as a crypto asset service provider in Bahrain and notched in-principle approval for a Financial Services Permission in Abu Dhabi.
As part of its European expansion plans, Binance received a regulatory nod to register as a Virtual Asset Services Provider (VASP) from the Bank of Spain.
Furthermore, the exchange is one of the few companies that has managed to keep its operations running smoothly even during extreme market downturns. Instead of looking for cost-cutting measures during the bear market, Binance is eyeing a few entities as potential acquisition targets. In June, the exchange’s CEO, CZ, announced ramping up investment in talent and acquisitions.
Featured Image Courtesy of Central Banking