Binance receives a $3.4 million fine in the Netherlands

Despite unclear Dutch regulations, Binance was fined for operating illegally in the Netherlands.

Binance, the world’s number one cryptocurrency exchange, was fined 3.3 million ($ 3.4 million) by the Central Bank of the Netherlands on Monday.

Apex Bank has accused Binance of operating in the country without a proper license. A $ 3.4 million fine was imposed after the De Nederlandsche Bank (DNB) warned Binance that it was offering cryptocurrency services domestically without permission.

According to DNB, Binance was treated with the strictest Category 3 fines of the three levels of enforcement of DNB. The DNB said it had fined for the seriousness of the breach and the degree of negligence.

The Central Bank of the Netherlands added that Binance had been operating without a license for a very long time from May 21, 2020 to at least December 1, 2021.

The DNB added that it considered the size of Binance and the large number of customers in the Netherlands before imposing a fine.

However, DNB added that Binance had appealed the fine earlier last month. A spokesperson for the crypto exchange said the company is aiming to move beyond the case as it works to obtain a Dutch license. A spokeswoman said.

“Today’s decision represents a long-awaited point in our ongoing collaboration with the Central Bank of the Netherlands. We do not share the same view on all aspects of the decision, but we do have regulations that Dutch regulators deem appropriate. We deeply respect the authority and expertise to enforce. “

DNB has reduced Binance’s fine by 5% as the cryptocurrency exchange applied for a license domestically. In addition, DNB added that the company was relatively transparent about the work in process.

The Dutch central bank added that it is still considering applying for Binance. Binance has recently secured licenses in certain European countries such as France, Italy and Spain.

Cryptocurrency companies need to register with relevant European authorities, but the broader crypto market is not yet fully regulated in Europe and most parts of the world.