The Dutch central bank has fined the well-known exchange Binance €3.3 million for operating unlawfully. One of the biggest cryptocurrency exchanges in the world is called Binance. The judgment was delivered on Monday, July 18, 2022.
Binance in difficulty
The warning from De Nederlandsche Bank in August 2021 preceded the penalties (DNB). This notification stated that Binance had provided cryptocurrency services in the nation without authorization. A Category 3 fine was imposed on the business. Of the three levels of enforcement by the DNB, this is the harshest. The DNB stated in a statement that the fine almost reached the maximum amount “due to the seriousness and degree of guilt of the non-compliance”.
Apparently took the corporation more than a year to commit a violation
According to the central bank, the breach occurred over a “long period” that lasted from at least May 21, 2020 to December 1, 2021. In particular, the central bank stated, “DNB considers the non-compliance to be very serious.”
Central Banks versus Binance
In order to pursue its Dutch license, the company intended to put the conflict behind it, according to a company representative. The spokeswoman added in an email that “today’s decision marks a long-awaited milestone in our continuous work with the Dutch Central Bank.” This development contradicts Binance’s most recent shift in position towards cooperation with international regulators. Prior to becoming more compliant with the law, Binance’s CEO Changpeng Zhao frequently boasted that the company had no official headquarters anywhere in the world.
Central Western authorities are retaliating as Binance pushes the envelope throughout the world, but especially in Africa. But things appear to be calming down. The operations of Binance are more open. Above all, they now conduct business inside the confines of agreements and rules.
