Here’s Why the Dutch Central Bank fined Binance for $3.3 million

Paigambar Mohan Raj
Source: Yahoo Finance

The Dutch Central Bank (DNB) has revealed that it fined Binance 3.3 million euros ($3.35 million) in April 2022. The fine was imposed because the exchange offered services to Dutch citizens without proper registration. The DNB’s General Fine Setting Policy was applied while estimating the amount.

Companies willing to offer services in the Netherlands must register under the Money Laundering and Terrorist Financing (Prevention) act. The fine is a basic amount of 2 million Euros. The additional charges are attributed to the fact that Binance has a large number of clients in the Netherlands. Another reason for the increased fine is the extended period of time between the date of registration obligation and the end of DNB’s investigation.

Nonetheless, the DNB reduced the fine by 5% as Binance has applied for the necessary license.

This is not the first time the exchange got into a spat with the Dutch Central bank. On the 18th of August of 2021, the DNB had issued a public warning against Binance regarding the same.

Binance following a pattern of not registering?

Binance is one of the largest crypto exchanges in the world. However, the company has faced flack from authorities regarding the lack of proper licenses.

Recently a letter was sent to the Department of Trade and Industry (DTI) of the Philippines for offering services in the country without proper registration. The letter was sent by the regional think organization Infrawatch PH. The agency has brought Binance’s local promotion offerings to the DTI’s notice. The convener of the research group, Terry Ridon, asserted that the promotions offered by Binance are scattered randomly over websites, Facebook, and other local communities.

Binance CEO CZ, went to the country to sort the matter out. The firm has since applied for the necessary permits to continue its operations.

While there, CZ noted,

“Regulation helps adoption, not the other way around.”

Binance has been at crossroads with authorities in many countries. The SEC, in America, has also been investigating the exchange. This could hinder the company’s growth, but at the moment, it does not seem to be getting in the way.