The Binance cryptocurrency exchange is subject to a fine in the Netherlands, according to the Dutch central bank, because it was not granted regulatory authority to operate there.
Binance Holdings was fined $3.35 million by the Dutch central bank (DNB) for providing local cryptocurrency services without being registered with the appropriate authorities. The administrative fine was imposed by the regulator in April 2022, the Dutch central bank declared officially on Monday.
The DNB emphasized that, in accordance with the Money Laundering and Terrorist Financing Prevention Act, every business providing cryptocurrency services in the Netherlands must register with the central bank. The regulator also said that on August 18, 2021, the DNB had earlier warned the public about Binance.
The DNB allegedly increased its fine against Binance because of the platform’s high trading volume. In the Netherlands, Binance has a “very large number of customers,” and its daily trading volume was “$13.7 billion,” the regulator claimed.
According to the DNB, Binance’s repeated infractions were a contributing factor in the increased fine. The bank claims that the infractions took place between May 2020, when the DNB established the registration requirement, and December 2021, when the bank declared the inquiry complete. The regulator stated, “DNB, therefore, considers these violations to be very serious.”
Binance has submitted an application to register, and the registration process is now being addressed, according to the central bank. The DNB decreased the total amount of the fine by 5% since the exchange has taken steps to comply with the law and has been open about its business operations, according to the notice.
Binance hasn’t explicitly acknowledged or denied that the company has paid the fine as of yet. Binance reportedly objected to the fee on June 2, 2022, per the announcement.