One of the largest cryptocurrency exchanges, Binance, was fined $3.35 million by the Dutch central bank (DNB) on Monday for operating in the Netherlands without being authorized to do so.
Following a public warning against Binance in August 2021, the penalty was imposed on Binance Holdings Ltd. in April 2022, according to DNB. In a statement, the bank said that the exchange had stated it would appeal in June.
Binance violated Dutch money laundering rules, says DNB
According to the DNB, Binance was in breach of Dutch money-laundering rules between at least May 2020 and December 1, 2021, and throughout that time, it had a competitive advantage over businesses that were registered with the DNB.
The penalty, according to a spokeswoman for the exchange, marks a “pivot in our continuing relationship” with the DNB. The business has subsequently established its services Nederland BV, according to the spokeswoman.
“We can pursue a more conventional operating strategy in the Netherlands now that this is behind us, they declared.”
Although the DNB stated that it had not yet authorized Binance’s registration, it has reduced the original punishment by 5% in recognition of the business’s “very transparent” conduct during the process.
According to the exchange, it has acquired regulatory permissions in France, Italy, and Spain, among other European nations.
On May 21, 2020, the requirement for registration for cryptocurrency service providers went into effect because of the substantial danger of money laundering and terrorism funding posed by these services. This is connected to the anonymity that cryptographic transactions provide.
It is more difficult to track whether the danger of unlawful money flows is adequately mitigated without this registration requirement.