The Dutch Central Bank, according to a release, has fined Binance, the world’s largest cryptocurrency exchange by trading volume, €3.3 million ($3.4 million) for continuing to offer services to Dutch citizens without required registration.
De Nederlandsche Bank (DNB) requires virtual asset service providers to complete registration under the Money Laundering and Terrorist Financing Prevention Act. The bank increased the fine from €2 million because of Binance’s large customer base in Netherland, the bank said.
The Dutch central bank officially announced today that it imposed the administrative fine in April 25, 2022. It also mentioned that it had previously issued a public warning to Binance on the 18th of August, 2021.
What you should know
- According to the regulator, Binance had a “very large number of customers in the Netherlands,” stating that its daily trading volumes amounted to $13.7 billion according to the Dutch Central Bank.
- The central bank also mentioned that it also increased the penalty due to prolonged violations by Binance. According to the bank, the violations occurred from May 2020, when the DNB introduced the registration obligation until the bank closed the investigation in December 2021. “DNB, therefore, considers these violations to be very serious,” the regulator noted.
- The central bank also mentioned that Binance has submitted an application to register and the registration process is now being addressed. As the exchange has moved to comply with the law and has been transparent about its business operations, the DNB reduced the total amount of the fine by 5%, the announcement notes.
- A spokesperson for Binance explained that the firm reached a critical milestone in meeting Dutch regulatory requirements through a locally established entity, Binance Nederland BV. The event marks a long-awaited pivot in our ongoing collaboration with the Dutch Central Bank as well as the firm’s growing engagement with global regulators.
- The representative further stated, “While we do not share the same view on every aspect of the decision, we deeply respect the authority and professionalism of Dutch regulators to enforce regulations as they see fit. With this now behind us, we can continue pursuing a more traditional operating model in the Netherlands.”
Binance has yet to confirm whether or not the firm has paid its fine. According to the announcement, Binance objected to the fine on June 2, 2022.
Binance has been seeking regulatory approval to operate all over the world. In May, Binance received regulatory approval to operate in France and also obtained a provisional approval to operate as a broker-dealer in Abu Dhabi, UAE, in April. Binance is looking to capitalize on these approvals as it aims at other countries like the Netherlands.
Kudos to a Country where laws are made and enforced to protect investors from losing their entire life savings unlike Nigeria my Country where regulatory authorities would only shout after investors must have been defrauded in billions with no concrete effort to recover the lost funds.