Dutch c-bank imposes EUR 3.3 million fine on Binance
The Central Bank of the Netherlands (DNB) today announced the imposition of a fine of EUR 3.3 million fine on Binance Holdings Ltd.
The regulator explains that the fine was imposed because Binance has been offering crypto services without the legally required registration.
Companies that want to offer crypto services in the Netherlands are obliged to register with DNB under the Money Laundering and Terrorist Financing (Prevention) Act. DNB previously issued a public warning regarding Binance on August 18, 2021.
When determining the amount of the administrative fine, DNB’s general fine setting policy has been applied. The basic amount has been increased due to increased seriousness and culpability.
In determining the size of the monetary penalty, DNB took into account the fact that Binance is the largest provider of crypto services worldwide, with a daily trading volume of USD 13.7 billion, and that Binance has a very large number of customers in the Netherlands. In addition, Binance has enjoyed a competitive advantage because it has not paid any levies to DNB and has not had to incur other costs in connection with ongoing supervision by DNB.
Another important reason for the increased fine is that the violations took place over a long period of time: from 21 May 2020 (when the registration obligation was introduced) until at least 1 December 2021 (when the investigation by DNB ended). DNB therefore considers these violations to be very serious.
However, DNB has moderated the fine by 5%, partly because a registration application has now been submitted and because Binance has been relatively transparent about its business operations throughout the process. This registration application is currently being assessed by DNB.
Binance objected to the fine on June 2, 2022.