Earlier this month, the Dutch Central Bank fined Binance, one of the world’s largest crypto exchange platforms, to a tune of 3.3 million euros. Binance was fined for offering its services in the Netherlands without registration in the said country.
The Dutch Central Bank issued a warning to Binance in August 2021. Following this, the fine was issued against Binance Holdings Ltd. in April 2022. Binance had indicated that they would appeal the said decision.
According to the Dutch Central Bank, Binance was in a clear violation of the anti-laundering laws of the area and took advantage of firms that were in fact registered with the DNB. As per DNB, Binance had been in violation for a significant period, between May 2020 and December 2021.
A spokesperson for Binance, via email communication, revealed that the fine was nothing but a pivot in its ongoing collaboration with the Dutch Central Bank. The company had already set up a local branch, named Binance Nederland BV, since the issuance of the fine. Binance looks forward to putting this episode behind them and is trying to establish a more traditional operating model in the Netherlands. As per Binance, the company had already received regulatory approvals from some European countries, namely Spain, France, and Italy.
The DNB revealed that the fine was reduced by 5% from what it had originally intended due to the relatively transparent operations of Binance. However, regulatory approval from DNB has still not been issued for Binance.