World’s largest cryptocurrency exchange Binance fined $3.35M over illegal operations and money laundering in the Netherlands
Binance, the world’s largest cryptocurrency exchange, has been fined $3.35 million over illegal operations and violation of Dutch money-laundering laws in the Netherlands.
In an announcement on Monday, the reserve bank of the Netherlands (DNB) said it fined Binance $3.35 million (3.3 million euros) for offering services in the Netherlands without registration in the country and violation of Dutch money-laundering laws.
According to a report from Reuters, the DNB said that “Binance had been in violation of Dutch money-laundering laws and had enjoyed a competitive advantage against companies that do have a DNB registration during the period it was in non-compliance. The violation took place between at least May 2020 and Dec. 1, 2021.
The DNB formally revealed Monday that the regulator enforced the administrative fine against Binance in April 2022, following a public warning issued against Binance in August 2021. In another statement, the DNB said that Binance had indicated in June it would appeal the charges.
According to the regulator, Binance had a “very large number of customers in the Netherlands,” while its day-to-day trading volumes totaled up to “$13.7 billion.”
A Binance spokesperson said in an emailed reaction the fine marked a “pivot in our ongoing collaboration” with the DNB. The spokesperson added that Binance has since set up a local company branch, Binance Nederland BV.
However, the DNB said it has not yet approved Binance’s registration but it had reduced the fine it had originally intended by 5% because the company has “been relatively transparent about its operations throughout the process.”
The spokesperson added, “With this now behind us, we can continue pursuing a more traditional operating model in the Netherlands.”
The DNB said it has not yet approved Binance’s registration but it had lessened the fine it had originally intended by 5% because the company has “been relatively transparent about its operations throughout the process”.
Meanwhile, Binance said it had received regulatory approvals in other European countries including France, Italy, and Spain.
Domiciled in the Cayman Islands, Binance was founded in 2017 by Changpeng Zhao and Yi He. The exchange provides a platform for trading various cryptocurrencies. Today, Binance is the world’s largest crypto exchange. Binance provides access to exchange digital currency pairs on the market while maintaining security, and liquidity, enabling a safe and efficient deal with anyone, anytime and anywhere.