The main Dutch banking regulator has punished the largest cryptocurrency exchange for providing services in the country without registration.
The Dutch Central Bank (DNB) has announced that Binance Holdings has been fined 3.3 million euros. The Irish representative office of the crypto exchange violated the anti-money laundering law and unreasonably enjoyed a competitive advantage over companies registered with the DNB. Namely, non-payment of mandatory fees to the central bank and the refusal to pay regulatory compliance costs.
In August 2021, the regulator publicly warned Binance of possible sanctions for operating in this jurisdiction without a license:
“Binance provides crypto services in the Netherlands without the required legal registration, which increases the risk of clients being involved in money laundering or terrorist financing.”
A Binance spokesperson said that the exchange will appeal the fine, and that documents have been submitted to the Chamber of Commerce and the Central Bank of the Netherlands to obtain a license to run the exchange services of the local branch of Binance Nederland BV.
Although the registration of Binance Nederland BV has not yet been approved, DNB reported a 5% reduction in penalties, adding that Binance has been “relatively transparent about its operations throughout.”
The other day, a subsidiary of the largest crypto exchange in the world, Moon Tech, received a virtual asset service provider (VASP) license from the Central Bank of Spain. The authorization will allow Binance to offer Spanish customers crypto exchange and custody services in full compliance with the Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) regulations.
Source: Bits
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