Binance Fined $3.4 Million for Operating Illegally by Dutch Central Bank

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Binance was fined 3.3 million Euros ($3.4 million) by the Central Bank of the Netherlands on for operating illegally in the country.

The fine was imposed following a warning from De Nederlandsche Bank (DNB) in August of last year that Binance had provided cryptocurrency services in the nation without authorization.

Binance Accused of Operating in The Netherlands Without Authorization

According to a statement from the DNB translated to English, the charge exceeded the bank's permitted range of 2 million to 4 million euros because of the severity and degree of responsibility of the non-compliance. DNB imposed a category 3 fine, the highest level of punishment. 

The central bank says the breach occurred during a "prolonged period" that lasted from May 21, 2020, through at least December 1, 2021. As a result, the regulator stated, "DNB considers the non-compliance quite serious."The DNB also considered Binance's size and "quite considerable customer base in the Netherlands." 

CoinGecko data shows that Binance operates the largest cryptocurrency exchange in the world, with daily spot trading volumes of $ 13.8 billion. On June 2, according to DNB, the world's largest crypto exchange by trading volume submitted an appeal against the fine.

In an e-mail to Gokhshtein Media, a representative for Binance saidthe business hopes to move past the conflict as it pursues its Dutch license.

"The choice we made today signals a long-awaited change in direction in our ongoing work with the Dutch Central Bank," the spokeswoman stated via email. The statement reads, "Binance strongly respects the power and professionalism of Dutch regulators to apply legislation as they see fit. "Even though we do not agree on all aspects of the choice,"

The crypto exchange recent tone change regarding reaching a settlement with international regulators is in conflict with the new development. Until the company became more compliant with the law, Binance's CEO Changpeng Zhao boasted that Binance had no official headquarters anywhere in the world. Binance is currently licensed in France, Italy, and Spain, 

Because Binance applied for registration and was "quite honest" about its operations throughout the process, the Dutch fine was lowered by 5%, according to DNB.  The central bank says the application from Binance is still under evaluation.

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