Dutch central bank serves Binance $3.4 million fine for unauthorized operation

The largest cryptocurrency exchange in the world, Binance, was fined 3.3 million euros ($3.4 million) by the Dutch central bank on Monday for operating illegally in the Netherlands.

Following a warning from De Nederlandsche Bank (DNB) in August 2021 that Binance had provided cryptocurrency services in the nation without authorisation, the fine was imposed.

The company received a category 3 fine, the highest degree of punishment offered by DNB. The charge exceeded the bank's permitted range of 2 million to 4 million euros due to the intensity and degree of responsibility of the non-compliance, according to a statement from DNB.

According to the central bank, the breach occurred during a "prolonged period" that lasted from May 21, 2020, through at least December 1, 2021. Because of this, the regulator stated that it deems the non-compliance to be very serious.

The size and quite considerable clientele in the Netherlands of Binance, according to DNB, were also taken into consideration. According to CoinGecko data, the business operates the largest cryptocurrency exchange in the world, with $15.5 billion daily spot trading volumes.

On June 2, according to DNB, Binance submitted an appeal against the charge.

According to a representative for Binance, the business hopes to move past the conflict as it seeks a Dutch license.

“Today’s decision marks a long-awaited pivot in our ongoing collaboration with the Dutch Central Bank,” the spokesperson said in an email. “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.”

The new development contradicts Binance's recent tone change over reaching a settlement with international regulators. Prior to becoming more compliant with the law, Binance's CEO Changpeng Zhao frequently boasted that the company had no official headquarters anywhere in the world.

Since then, it has made an effort to work with authorities rather than against them, especially in Europe, where it has obtained licenses in France, Italy, and Spain.

Although the DNB stated that it had not yet authorized Binance's registration, it had reduced the original punishment by 5% in recognition of the business's "relatively transparent" conduct during the process.

According to Binance, it has acquired regulatory permissions in France, Italy, and Spain, among other European nations. Concerning Binance Holdings Ltd.'s location, both a representative for Binance and the DNB remained silent.

Binance Nederland BV was founded in October 2021 and has been held by Binance Holdings Ltd. of Ireland since December 24, according to documents filed with the Dutch Chamber of Commerce.