Binance news: DNB fined Binance 3.3 million euros
Binance is one of the world's major cryptocurrency exchanges. However, the firm has received criticism from authorities due to lack of necessary permissions.
The latest Binance news covers the exchange platform being fined 3.3 million euros (£2.8million) by the Dutch Central Bank (DNB) in April 2022. The penalty was levied because the exchange provided services to Dutch nationals without being properly registered. The DNB's General Fine Setting Policy was used to calculate the amount to be paid as fine.
In a statement issued on Monday, the regulator stated that violations committed by Binance are punished by third-category penalties, with a base amount of €2 million (£1.7 million).
This basic amount was increased for Binance, with DNB outlining many reasons for doing so.
According to DNB, one of the reasons is that digital asset brokerage behemoth is not only the largest supplier of crypto services globally but also has a high number of consumers in the nation.
Since May 21, 2020, the Dutch Central Bank has mandated virtual asset service providers (VASPs) to be registered under the Anti-Money Laundering and Anti-Terrorist Financing Act.
According to the authority, Binance violated the registration regulations from May 21, 2020, until last December 1, 2021, when DNB finished its inquiry.
According to DNB, this is the major reason for the higher penalties because these offences are considered extremely serious.
DNB warned Binance in August 2021 that operating in the Netherlands without the appropriate legal registration "may increase the risk of customers becoming involved in money laundering or terrorist financing."
However, the DNB stated that it has reduced the punishment by 5%, partly because Binance has already submitted a registration application, which is presently being reviewed, and because the exchange has been "relatively transparent about its operations throughout the process."
The crypto exchange has been steadily expanding across Europe. Binance revealed last week that its Spanish subsidiary, Moon Tech Spain, has been registered as a VASP with the Bank of Spain.
Both France and Italy certified the crypto exchange as an official digital asset supplier in May of this year.
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Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.