Binance Fined €3.3 Million by Dutch Central Bank

The central bank of the Netherlands, locally known as De Nederlandsche Bank (DNB), slapped Binance with a monetary fine of €3.325 million for operating in the country without registration.

The Dutch bank mandated the registration of all crypto businesses operating within its jurisdiction to register themselves with the regulator. The rules came into effect on May 21, 2020, with the aim to curb the high risks of money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term or terrorist financing.

The Largest Crypto Exchange

Binance, which is the largest global crypto exchange in terms of trading volume, failed to register itself with the Dutch regulator.

The monetary penalty on Binance was slapped on April 25, but the crypto exchange “objected to the fine on June 2, 2022.”

The DNB pointed out that Binance “has a very large number of customers in the Netherlands.” As the exchange is not registered with the regulator, it does not have to report the crypto transactions for which “a large number of unusual transactions may remain out of sight of the investigating authorities.”

According to the regulations, the Dutch regulator can impose a penalty of up to €4 million, with the base amount at €2 million, for registration lapses by crypto companies. The amount is decided based on the seriousness and culpability of the platforms.

However, the regulator slashed the penalty by 5 percent as Binance’s operations are relatively transparent now. The crypto exchange has also submitted a registration application, which is now being assessed.

The penalty came almost a year after the Dutch regulator issued a public warning against Binance for illegally offering crypto services in the country. Additionally, several other regulators issued similar warnings against Binance.

Meanwhile, Binance has now taken a different tactic and is pushing to become a compliant crypto exchange. It has received several regulatory authorizations in recent months, including from the regulators in France, Italy and Spain.