The Central Bank of the Netherlands fined Binance €3.3 million

Posted 19 July, 2022

The Dutch Central Bank (DNB) fined Binance Holdings Ltd. in the amount of €3.325 million, according to the website of the regulator. The exchange is accused of illegally providing cryptocurrency services in the country without undergoing mandatory registration with the Central Bank.

Companies offering products and services related to digital assets are required to register with the Central Bank of the Netherlands under the Prevention of Money Laundering and Terrorist Financing (Wwft) law. The regulator notes that it already issued a public warning regarding the Binance platform in August 2021.

The decision on the fine was made at the end of April of this year, however, it was only now covered. The report also states that in early June, Binance protested the imposition of a fine, but submitted an application for registration for consideration by the Central Bank of the Netherlands.

The base rate of the fine is €2 million, however, an increased fine has been imposed on Binance. In setting the payout amount, the Central Bank took into account that Binance is a major provider of crypto-currency products with a daily trading volume of $13.7 billion and that Binance has a very large number of customers in the Netherlands. In addition, the exchange does not pay any fees to the bank and does not bear the costs associated with ongoing supervision by the DNB.

Another important reason for the increase in the base rate, the Central Bank called the fact that the exchange violated the law for a long period of time: from May 21, 2020 (the date the registration obligation was introduced) to December 1, 2021 (the date the DNB investigation ended) at least.

In early June, the US Securities and Exchange Commission (SEC) launched an investigation into possible violations of US securities laws by the Binance crypto exchange during the initial sale of its own Binance Coin tokens in 2017.


Previous story

20 July, 2022 08:21

← Sri Lanka: Parliament elects a new president after the flight of Rajapaksa

Sri Lanka's parliament meets on Wednesday to nominate a new speaker to replace Gotabaya Rajapaksa, who fled after his palace was stormed last week by angry mobs...


Sri Lanka: Parliament elects a new president after the flight of Rajapaksa

Next story

19 July, 2022 09:40

Yesterday on Wall Street →

The New York Stock Exchange, which ended last week on an optimistic note, lost confidence and ended slightly down ahead of a busy week in corporate results.

Yesterday on Wall Street
Write a comment
Prove you’re not a bot + 17 = 22