Crypto Exchange Binance Faces Fine From Dutch Central Bank for Allegedly Operating in Country Without Permission
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The world’s largest crypto exchange by trading volume is receiving a registration fine from De Nederlandsche Bank (DNB), the Dutch central bank.
According to an announcement, the fine will be punishable by the third category – the DNB’s strictest enforcement level.
“The violations committed by Binance are punishable with a fine from the third category.
This means that the administrative fine has a basic amount of EUR 2,000,000, a minimum amount of EUR 0 and a maximum amount of EUR 4,000,000.”
The Dutch central bank is fining Binance 3.3 million euros, approximately $3.34 million, for operating without proper registration from May 2020 to December 2021.
“In addition, Binance has enjoyed a competitive advantage because it has not paid any levies to DNB and has not had to incur other costs in connection with ongoing supervision by DNB…
DNB, therefore, considers these violations to be very serious.”
The DNB says that Binance has now properly applied for registration and has been transparent in the process. Binance also filed an objection to the fine in June.
“DNB has moderated the fine by 5%, partly because a registration application has now been submitted and because Binance has been relatively transparent about its business operations throughout the process.”
Reflecting Binance’s recent positive tone toward global regulators, a Binance spokesperson told CNBC they respect the DNB’s authority on the matter.
“Today’s decision marks a long-awaited pivot in our ongoing collaboration with the Dutch Central Bank…
While we do not share the same view on every aspect of the decision, we deeply respect the authority and professionalism of Dutch regulators to enforce regulations as they see fit.”