Binance was fined more than USD 3.3 million by the Dutch central bank for operating without the required registration.
- Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Binance was fined in the Netherlands
- The fine is for offering services without proper registration.
- The amount was USD $3.3 million
- Binance objected to the fine
Binance had had very good news in recent months. In 2021, the exchange had fallen on hard times, after his operations had been were restricted in many nations . Gradually it has been receiving official approval in countries such as France, Italy and more recently Spain . But this is once again negative information for the exchange with the highest volume of transactions in the world.
The Central Bank of the Netherlands fined the cryptocurrency exchange Binance with a fine of EUR $3.325 million (USD $3.37 million) for continuing to offer services to citizens of the Netherlands without the required registration, according to an official statement released today.
De Nederlandsche Bank (DNB) ) requires that virtual asset service providers (VASP) complete registration under the Prevention of Money Laundering and Terrorist Financing Act.
The fine was increased
According to the statement at the time of determining the amount of the administrative fine, it has been applied the DNB’s General Fine Setting Policy . The base amount has been increased, which was $2 million, due to increased severity and culpability.
This is what the bank reports:
“DNB has included in the fine increase that Binance is the largest cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. provider globally, with a daily transaction volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of USD $13.7 billion, and that Binance has a large number of customers in the Netherlands. In addition, Binance has enjoyed a competitive advantage because it has not paid any taxes to DNB and has not had to incur any other costs in connection with DNB’s ongoing supervision.”
He adds that another important reason for the increase in the fine is that “the violations took place over a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. period of time: from 21 May 2020 (the date on which the registration obligation was introduced) until at least 1 December 2021 (the date of completion of the investigation by DNB). DNB therefore considers these violations to be very serious”.
Application for registration
However, he says that DNB has moderated the fine by 5%, partly because it now an application for registration has been filed and because Binance has been relatively transparent about its business operations throughout the process. . This register is currently being evaluated by DNB.
The registration requirement for cryptoservices providers was introduced on 21 May 2020 because the bank considered that “cryptoservices present a high risk of money laundering or terrorist financing. This is related to the anonymity associated with crypto transactions. Without this registration obligation, it is less easy to monitor whether the risk of criminal money flows is sufficiently countered.”
It is worth noting that Binance objected to the fine on June 2, 2022.
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