Binance slammed $3.4m fine by Dutch central bank

The largest cryptocurrency exchange in the world, Binance, was fined 3.3 million euros ($3.4 million) by the Dutch central bank on Monday for operating illegally in the country.

Following a warning from De Nederlandsche Bank (DNB) in August of last year that Binance had provided cryptocurrency services in the nation without authorisation, the fine was imposed.

The corporation received a category 3 fine, the highest degree of punishment offered by DNB. The charge exceeded the bank’s permitted range of 2 million to 4 million euros “due to the gravity and degree of culpability of the non-compliance,” according to a statement from DNB.

According to the central bank, the breach occurred during a “prolonged period” that lasted from May 21, 2020, through at least December 1, 2021. Because of this, the regulator stated, “DNB considers the non-compliance to be very grave.”

The size and “very substantial customer base in the Netherlands” of Binance, according to DNB, were also taken into consideration. According to CoinGecko data, the business operates the largest cryptocurrency exchange in the world, with daily spot trading volumes of $15.5 billion.

On June 2, according to DNB, Binance submitted an appeal against the fine. According to a representative for Binance, the business hopes to move past the conflict as it pursues its Dutch licence. “Today’s decision marks a long-awaited pivot in our ongoing collaboration with the Dutch Central Bank,” the spokesperson said via email.