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Dutch central bank fines Binance 3.3 million euros
Global Banking & Finance Review®
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AMSTERDAM (Reuters) -The Dutch central bank (DNB) on Monday said it had fined Binance, one of the biggest cryptocurrency exchanges, 3.3 million euros ($3.35 million) for offering services in the Netherlands without being registered in the country.
AMSTERDAM (Reuters) -The Dutch central bank (DNB) on Monday said it had fined Binance, one of the biggest cryptocurrency exchanges, 3.3 million euros ($3.35 million) for offering services in the Netherlands without being registered in the country.
The fine was issued against Binance Holdings Ltd. in April 2022, following a public warning issued against Binance in August 2021, DNB said. The bank said in a statement that Binance in June had indicated it would appeal.
The DNB said Binance had been in violation of Dutch money-laundering laws and had enjoyed a competitive advantage against companies that do have a DNB registration during the period it was in non-compliance — between at least May 2020 and Dec. 1, 2021.
A spokesperson for Binance said in an emailed reaction the fine marked a “pivot in our ongoing collaboration” with the DNB.
The spokesperson said the company has since set up a local company branch, Binance Nederland BV.
“With this now behind us, we can continue pursuing a more traditional operating model in the Netherlands,” they said.
The DNB said it has not yet approved Binance’s registration but it had lessened the fine it had originally intended by 5% because the company has “been relatively transparent about its operations throughout the process”.
Binance said it had received regulatory approvals in European countries including France, Italy and Spain.
The Binance spokesperson and a spokesperson for the DNB did not answer questions about where Binance Holdings Ltd. is based.
According to Dutch Chamber of Commerce filings, Binance Nederland BV was established in October 2021 and has been owned by Binance Holdings Ltd. Of Ireland since Dec. 24, 2021.
($1 = 0.9857 euros)
(Reporting by Toby Sterling; Editing by Catherine Evans and Alison Williams)
A cryptocurrency exchange is a platform that allows users to buy, sell, or trade cryptocurrencies for other digital currency or traditional currency.
A central bank is a financial institution that manages a country's currency, money supply, and interest rates, and oversees the banking system.
Compliance in finance refers to the process of ensuring that financial institutions adhere to laws, regulations, and guidelines set by governing bodies.
Money laundering is the process of making illegally obtained money appear legitimate by disguising its original source.
A competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.
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