Binance Fined Over $3.3M by Dutch Central Bank

Binance has been accused of violating Dutch money laundering rules and fined €3.325 million ($3.37 million) for continuing to offer services to Dutch citizens without required registration.

Binance violated Dutch money laundering rules, says DNB

On May 21, 2020, the requirement for registration for cryptocurrency service providers went into effect because of the substantial danger of money laundering and terrorism funding posed by these services. This is connected to the anonymity that cryptographic transactions provide. De Nederlandsche Bank (DNB) requires virtual asset service providers (VASPs) to complete registration under the Money Laundering and Terrorist Financing Prevention Act.

According to the Dutch Central Bank (DNB), Binance was in breach of Dutch money-laundering rules between at least May 2020 and December 1, 2021, and throughout that time, it had a competitive advantage over businesses that were registered with the DNB.

The Dutch Central Bank has fined cryptocurrency exchange Binance a 3.325 million euros ($3.37 million) fine for continuing to offer services to Dutch citizens without required registration, according to an official release on Monday.

Although the DNB stated that it had not yet authorized Binance’s registration, it has reduced the original fine by 5% in recognition of the business’ “very transparent” conduct during the process.

The fine was increased from 2 million euros as Binance has “a very large number” of customers in the Netherlands. The exchange objected to the fine, which was imposed on April 25.

The penalty, according to a spokeswoman for the exchange, marks a “pivot in our continuing relationship” with the DNB. The business has subsequently established its services Nederland BV, according to the spokeswoman.

“We can pursue a more conventional operating strategy in the Netherlands now that this is behind us, they declared.”

According to the exchange, it has recently received regulatory registration in France, Italy, and Spain, among other European nations.