The Bank of Netherlands Fines Binance for €3.3 Million

19.07.2022 10:11
by Sviatoslav Pinchuk
2 min read

The Bank of Netherlands is fining one of the largest crypto exchanges, Binance, in the amount of €3.3 million. The reason for the fine is that Binance offered its services in the Netherlands while failing to obtain a license from the Dutch government.

The regular fine for such offence is €2 million. However, the fine was increased in Binance’s case because the exchange was able to gain a competitive edge in this way over other crypto exchanges. Moreover, Binance did business with a rather large number of users in the Netherlands.

Since May 2020, there is a law in the Netherlands requiring crypto asset providers to register their business. The law is in place in order to combat money laundering and financing of terrorist groups on crypto exchanges. This is another reason why the fine was increased, as Binance potentially allowed shady money activities on its platform.

However, as Binance has now applied for registration, the fine was reduced by 5%. The Bank of Netherlands’ representative stated that the crypto exchange had been relatively transparent through the legal process.

Binance was involved in more positive development in other European countries recently. Since May, it has become a registered crypto exchange in Spain, Italy, and France.

Author

  • Man who simply bought some BTC for domestic needs in 2014 and then forgot about it till 2017. The dude who got Etherium in 2017 by misclick and sold it in 2018 "just to try". Lost 1 Florida house in XEM in 2018, Sviatoslav finally decided to trade reasonably and now he is one of the most analytical and data-driven trader in Crypto Industry. Has Bachelor Degree of Chinese Interpreter and deep practical experience in competitive niches SEO.

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