Dutch central bank fines Binance $3.37 million

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The world‘s largest cryptocurrency exchange, Binance, has been fined $3.37 million by the Dutch Central Bank for offering services without obtaining proper registration.

De Nederlandsche Bank (DNB) requires Virtual Asset Service Providers (VASPs) to register under the Money Laundering and Terrorist Financing Prevention Act before offering services in the Netherlands . The fine follows a warning from the central bank last August, according to multiple reports.

The bank said Binance has been in violation since 2020 and has had a “competitive advantage” by not paying bank levies or compliance fees, according to a DNB press release on Monday (July 18).

Binance has since requested all necessary records, which are currently under review by the central bank. Binance appealed the fine, which was imposed in April, on June 2, DNB said, according to a CNBC report, but now wants to settle the case.

“Today’s decision marks a long-awaited milestone in our continued collaboration with the Dutch Central Bank,” a Binance spokesperson told CNBC.

“While we do not share the same view on all aspects of the decision, we deeply respect the authority and professionalism of Dutch regulators to apply the regulations as they see fit,” the spokesperson said.

See also: French Member of European Parliament Wants Regulatory Review of Binance Approval

Binance received regulatory registration in France in May and provisional authorization to operate as a broker-dealer in Abu Dhabi in April.

The French approval is not without reaction, with a member of the European Parliament’s Economic and Monetary Affairs Committee, Aurore Lalucq, asking regulators to justify its “incomprehensible” decision to register a Binance unit as a provider of digital asset services, PYMNTS reported earlier this month.

Binance called its May registration in France a “marking achievement.”

Read more: Binance CEO Lightning Rod for Controversy Launches Bitcoin Price War

Binance Founder and CEO Changpeng “CZ” Zhao recently started offering fee-free bitcoin trading on more than a dozen currencies and stablecoins, PYMNTS reported last week. The move could amount to an all-out price war given Binance’s size and reach.

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