Binance fined by Dutch central bank over illegal services

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Binance fined by Dutch central bank over illegal services
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Cryptocurrency exchange Binance has reportedly been fined 3.3 million euros (£2.8 million) for operating in the Netherlands without the necessary regulatory authorization.

The Dutch central bank fined the leading cryptocurrency exchange in April, according to a press release published Monday.

Binance issues ‘warning’ in 2021

Registration requirements for all crypto asset providers in the Netherlands were introduced in May 2020, and the regulator sees compliance as part of a push to prevent the potential misuse of virtual assets in illicit activities such as money laundering and terrorist financing.

In a statement on Monday, the Dutch central bank revealed that Binance failed to comply with these requirements and continue to provide services — at least until December 1, 2021.

Binance

The DNB noted that the amount of the fine was as high as possible due to Binance’s “serious” breach. The exchange was also not taxed during the relevant period, and the Netherlands has a large number of Binance users, as determined during the investigation.

Still, the regulator reduced the fine by 5 percent in recognition of the crypto firm’s registration application. The bank also noted that the exchange was “relatively transparent about its business operations throughout the process.”

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

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

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