The DNB (De Nederlandsche Bank) has slammed the cryptocurrency exchange Binance with a fine of $3.4 million for conducting illegal operations.
According to a release on July 18th, Monday, the central bank of the Netherlands penalised Binance as it was conducting crypto services in the country without abiding by the legislative law or registering for any such transactions.
The penalty imposed on the crypto exchange falls under one of the most stringent enforcements conducted by the Central Bank, regulating under category three. A statement released by DNB suggested that the decision to impose a punishment on Binance was in regard to the degree and gravity of culpability committed by the non-compliance.
Binance must pay a penalty charge as a result of its failure to perform due diligence.
Dutch central bank fines Binance in blow to exchange’s European push https://t.co/CD4KarOJ6C
— Financial Times (@FT) July 18, 2022
Non-compliancy prolonged by the Crypto Exchange
DNB, in the statement, added that Binance has stretched out the non-compliance period for a very long time, fully functioning between May 2020 and December 2021. DNB repeatedly warned the crypto exchange platform about offering its services in the Netherlands without taking any proper authorization from the Dutch Central Bank.
However, because Binance paid no attention to the situation and failed to apply for a proper licence to continue its operations in the Netherlands, the company has now been penalized. Although the matters regarding the fine have come to light now, the documents reveal the real date—April 25th, 2022.
Binance also filed a counter-case on the fine imposed on June 2nd, suggesting that the platform has already applied for legal registration and is functioning transparently.
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