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Cryptocurrency exchange Binance fined by Dutch central bank


The Binance cryptocurrency exchange logo displays on a smartphone with a stock market percentage in the background.

Omar Marques | SOPA images | LightRocket via Getty Images

Binance, the world’s largest cryptocurrency exchange, on Monday was fined 3.3 million euros ($3.4 million) from the Dutch central bank for operating in the Netherlands without registration.

The penalty comes after a warning in August 2021 from De Nederlandsche Bank (DNB) last year that Binance was providing crypto services in the country without authorization.

The company was hit with a Category 3 penalty – the most stringent of the three levels of DNB enforcement. In a statement, the DNB said the fee was at an upper limit of €2 million to €4 million that the bank could impose “due to the seriousness and reprehensibility of the non-compliance”.

The breach took place over an “extended period,” the central bank said, running from May 21, 2020 until at least December 1, 2021. “This is why the DNB is here.” takes non-compliance very seriously,” the regulator said.

DNB said it also took into account the size of Binance and its “very substantial customer base in the Netherlands.” The company is the largest cryptocurrency exchange globally, with a daily spot trading volume of $15.5 billion, according to CoinGecko data.

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

A spokesperson for Binance said the company hopes to solve the problem behind its pursuit of a Dutch license.

“Today’s decision marks a long-awaited turning point in our continued cooperation with the Central Bank of the Netherlands,” the spokesperson said by email.

“While we do not share the same view on every aspect of the decision, we have great respect for the competence and professionalism of the Dutch regulators in enforcing regulations as they see fit. fit.”

This development goes against Binance’s recent shift to making peace with global regulators. Binance has previously mainly operated outside of regulatory parameters, with its CEO Changpeng Zhao often boasting about not having an official global headquarters.

Since then, it has tried to be a friend rather than an enemy of regulators – especially in Europe, where it has been licensed in France, Italy and Spain.

DNB said the censored Dutch fine was 5% lower because Binance was registered and was “relatively transparent” about its activities throughout the process. The central bank said it is still reviewing Binance’s application.



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