Cryptocurrency exchange Binance has been slapped with a $3.3 million fine by the central bank of the Netherlands.
The central bank, De Nederlandsche Bank (DNB), issued Binance Holdings with the fine after the exchange failed to gain regulatory approval to operate in the country.
Companies that want to offer crypto services in the Netherlands are obliged to register with the DNB under the Money Laundering and Terrorist Financing Prevention Act.
The fine for violating the agreement legislation is a minimum of €2 million. DNB says the base amount for Binance “has been increased due to increased severity and culpability.”
Among the reasons cited by the DNB for decoding to increase the fine includes Binance’s $13.7 billion daily trading volume, its large number of Dutch customers, that it benefited from a competitive advantage by not paying the DNB any levies, and for the long period the violations took place.
DNB claims to have issued a warning to Binance on 18 August 2021 that it needs to gain approval to continue operating.
Binance has since made a registration application with the DNB. The bank notes that Binance has “been relatively transparent about its business operations throughout the process.”
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