Binance Served €3.3 million Fine By Dutch Central Bank, Crypto License Assessment Underway To Remedy Violations

Summary:

  • Binance was fined by the Dutch Central Bank on Monday for not registering its operations with the regulator.
  • The fine imposed for violations is in the amount of €3.3 million, roughly $3.4 million in USD.
  • Violations include not paying taxes and other costs associated with running a regulated business in the Netherlands.
  • Binance previously received a warning from the watchdog in August 2021.
  • The leading exchange has submitted a registration application.
  • At press time, the application is under review by the Dutch apex bank.
  • Binance remains confident that the development should not halt European expansion plans, per reports.
  • The mammoth exchange has the approval to operate in key European markets like France, Italy, and Spain.
  • Germany might be another location targetted by CZ’s company. 

Netherlands’ top financial regulator, the Dutch Central Bank (DNB) issued a €3.3 million fine to leading crypto exchange Binance on Monday, over violations by the platform regarding failure to operate as a registered and regulated entity in the country.

The news was revealed via an official statement from the DNB on Monday and stated that Binance is not yet a registered business in the Netherlands, despite having a considerable customer base. 

Crypto exchange Binance fined $3.4 million by Dutch central bank for operating illegally https://t.co/UeXPoHohfh

According to the DNB, Changpeng Zhao’s local subsidiary Binance Nederland BV offered cryptocurrency trading services without complying with the provisions of the Money Laundering and Terrorist Finance Prevention Act stipulated by the apex bank.

The estimated $3.4 million fine is also due to tax defaults among other violations. 

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.

However, the DNB also stated that the fine was slashed by 5%, thanks to a cryptocurrency business registration application submitted by Zhao’s crypto exchange. This aligns with the mandatory registration policy introduced in May 2020.

A Binance spokesperson told sources that the application is currently in review and that CZ’s platform is after a crypto service provider license.

Binance European Expansion Marches On

Despite the development, CZ’s company sees progress on its European expansion roadmap. A representative told The Block that Monday’s news highlights a key breakthrough in ongoing conversations with the DNB.

Zhao’s company has indeed clinched pivotal approvals in other European and G7 jurisdictions including France, Italy, and Spain, as EthereumWorldNews reported.

There are also rumors that Zhao’s company could set up shop in Germany soon.

Onward

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