Binance, the largest cryptocurrency exchange by trading volume has been asked to pay a fine of over EUR3.3 million. This is for operating in the Netherlands without proper authorization from the Dutch Central Bank (De Nederlandsche Bank-DNB).
According to the Netherlands laws, firms interested in offering crypto services in the country are meant to register with DNB. Such exchanges will be drafted under the Money Laundering and Terrorist Financing (Prevention) Acts (Wwft) of the DNB. The law has been introduced in May 2020.
The sole purpose of this law is to resist and avoid money laundering schemes that may arise from the use of crypto. Particularly, using crypto with the intent of funding crimes and terrorist attacks. Crypto transactions come with facelessness and without the necessary registrations, monitoring the risk of criminal money inflow will not be easy.
Dutch Central Bank imposed the fine on Binance three months ago when its operations were still illegally active. This was after Binance was issued a public warning in August 2021. Earlier in June, the exchange challenged the penalty that was issued.
Offering unauthorized services made Binance an outlaw of the Netherlands. Binance was recently indicted in a Reuters investigative report for laundering $2.35 billion. With a muddy history as this, the exchange lived short of the objective of the Wwft. The total fine is summed up to be EUR 3,325,000. Although it could have been lesser, DNB considered the seriousness and the level of culpability and thought otherwise.
Binance Exchange Secures Operational Licences
However, the exchange has decided to fulfill its obligations and has applied for authorization from DNB. The central bank will assess the application in line with its laws and decide whether or not Binance would get legal approval.
Also, Binance received the nod of approval from the financial authorities in France. The exchange is now permitted to operate as a Digital Assets Service Provider after it received an operational license.
A few days ago, Binance announced that its Spanish subsidiary Moon Tech Spain, S.L., had received the license to operate as a virtual asset service provider to the Bank of Spain.