Dutch Central Bank Fines Crypto Exchange Binance $3.3 million for rendering its services without necessary permission.
The central bank issued a statement saying that the exchange violated its regulations by offering crypto services in the Netherlands without a legally required registration with the bank, which is prohibited.
Last August, the central bank issued a public warning about Binance, calling its offering “illegal.”
The regulator stressed that the principal amount of the fine has been increased due to “increasing seriousness and culpability”. However, it said the fact that the exchange had now applied for regulation weighed in in its favor, reducing the total penalty payable.
The Dutch watchdog’s condemnation reflects a split among European financial regulators over the exchange’s approach.
In the UK, the Financial Conduct Authority said it does not consider Binance capable of oversight, warning its “complex and high-risk financial products” pose “a significant risk to consumers”.
Binance is the largest provider of crypto services worldwide, with a daily trading volume of over $13.7 billion and a large number of clients in the Netherlands.
A Binance spokesperson told Reuters That fine marked a “pivot in our ongoing cooperation” with the Dutch regulator. The bank said it is yet to approve the exchange’s registration, but it has reduced the penalty to 5% originally because the company “has been relatively transparent about its operations throughout the process.”
Binance Europe Expansion Plan
Meanwhile, countries such as Spain, France and Italy have recently approved Binance to operate. However, the European Parliament and EU states have recently decided to tighten crypto regulations with new Markets in Crypto-Assets (MiCA) legislation, which is hindering the expansion plans of exchanges.
According to a Dutch Chamber of Commerce filing, Binance Netherlands BV was established in October 2021 and has been owned by Binance Holdings of Ireland since December 24, 2021.
The exchange said it would appeal against the fine.