Binance fined $3.4m in the Netherlands over regulatory issues

Crypto exchange Binance was fined 3.325 million euros (US$3.4 million) by De Nederlandsche Bank (DNB) for operating without relevant registration in the Netherlands.

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The Dutch central bank released a statement on Monday, saying that the penalty was imposed on April 25, 2022 after Binance failed to comply with a public warning from DNB in August last year.

Binance filed an objection to the fine on June 2, the statement said.

Under Dutch law, entities that are looking to offer crypto services in the Netherlands must register with DNB, in compliance with the Money Laundering and Terrorist Financing (Prevention) Act.

Binance was dealt with a Category 3 fine – the highest in DNB’s three-level punishment scale – because of “the increased seriousness and culpability” of the platform’s violations, according to the statement.

DNB also pointed out that Binance is the world’s biggest crypto exchange and has “enjoyed a competitive advantage” because it has not paid any levies. As such, Binance has not racked up other costs in connection with the Dutch central bank’s supervision.

In addition, the high fine can be attributed to how Binance kept committing violations from May 2020 until December 2021, which DNB considers to be “very serious.”

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However, the central bank lowered the charge by 5% after Binance submitted a registration application. The company has also been “relatively transparent” about its business operations.

The news comes as Binance is ramping up its Europe expansion. Earlier this month, the crypto exchange received licenses to operate in Spain, getting its third registration in the continent after France and Italy.

Currency converted from euro to US dollar: US$1 = 0.99 euro.