Binance fined by Dutch central bank over illegal services

Crypto exchange Binance has reportedly been fined €3.3 million (£2.8 million) for operating in the Netherlands without the requisite regulatory authorization.

According to a press release published on Monday, the Dutch Central Bank slapped the leading cryptocurrency exchange with the fine in April.

Binance ‘warned’ in 2021

The registration requirements for all crypto asset providers in the Netherlands was introduced in May 2020, with regulators eyeing compliance as part of the push to prevent potential misuse of virtual assets in illicit activities like money laundering and financing of terrorism.

In its statement Monday, the Dutch Central Bank revealed Binance had failed to adhere to these requirements and continued offering its services – until at least 1 December 2021.

The DNB noted that the fine was as high as possible due Binance’s “serious” violations. The exchange had also operated without any levies for the period in question, with Netherlands having a significant number of Binance users as established during the investigation.

Nonetheless, the regulator reduced the fine by 5% in recognition of the crypto company’s application for registration. The bank also noted that the exchange had been “relatively transparent about its business operations throughout the process.”

Binance reportedly objected to the said fine on 2 June, 2022.

However, Changpeng Zhao, co-founder and CEO, has previously noted that the company is looking to comply with regulatory requirements in all jurisdictions and locations that it offers its services.