Binance fined $3.4 million by Dutch Central Bank

Binance fined $3.4 million by Dutch Central Bank

 

Binance, the world’s largest Cryptocurrency Exchange, on Monday was hit with a fine of 3.3 million Euros ($3.4 million) by the Dutch central bank for operating in the Netherlands region without registration.

 

The fine came after warning from De Nederlandsche Bank (DNB) last year that Binance had offered Digital Currency and Asset Services in the region without authorization.

 

Also Read: Can You Insure Cryptocurrency? Here's All You Need To Know

 

The company was dealt a category 3 fine — the most stringent of DNB’s three levels of penalty. DNB said in a statement that the penalty came in at the upper limit of 2 million to 4 million euros, maximum the bank can impose “due to the gravity and degree of culpability of the non-compliance,”.

 

 

The Dutch central bank said that the company breached the restriction over a “prolonged period” spanning from May 2020, until at least December 2021. “This is why DNB considers the non-compliance to be very grave,” the financial regulator said.

 

DNB further said that it also took into account Binance Exchange is size and “very substantial customer base in the Netherlands.” According to CoinGecko data the exchange is the biggest Cryptocurrency Exchange globally, with daily trading volumes of approx. $15.5 billion.

 

Binance in turn has filed an appeal against the fine on June 2, DNB said.

 

Also Read: A New Update For All Crypto Investors: SEC's Proposed Rule On Trades Could Compromise DeFi, Says Cry

 

A Binance Exchange spokesperson said the firm is hoping to put the tiff behind it as it pursues its Dutch license.

 

The spokesperson said via email that “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.”

 

The development goes against Binance Exchange is recent shift in tone around making peace with regulators around the globe. Earlier, the Binance Exchange functioned largely outside the limitations of the law, with its CEO Changpeng Zhao often boasting of having no official headquarters in the world.

 

Also Read: Cristiano Ronaldo Signs NFT Deal With Binance Crypto Exchange

 

It has since made efforts to become a friend rather than foe to regulators — especially in Europe, where it has secured licenses in France, Italy and Spain.

 

The Dutch fine was brought down by 5% because Binance Exchange applied for registration and was “relatively transparent” about its processes during the process, DNB said. The central bank says it is still reviewing the application submitted by the firm.

 

Earlier this month, Reuters news reported that Binance U.S., continued to process trades by customers in Iran despite sanctions by U.S. regulatory body and an outright company ban on doing business there. Earlier in January, according to another report by Reuters Binance Exchange kept weak compliance checks on its customers until last year, despite questions raised by some senior company figures, drawing on interviews with former employees, internal text messages and correspondence with regulators. The Binance Exchange said in response that it was pushing industry standards higher.