Dutch Bank has imposed a fine on Binance for not registering in Netherland.
De Nederlandsche Bank (DNB) has imposed a whopping 3.3 million euros fine on Binance for operating in the Netherlands without the appropriate license.
DNB sighted many reasons for imposing the fine on Binance
- Any company offering crypto service in the Netherlands is obligated to register with the central bank in compliance with Money Laundering and Terrorist Financing Prevention Act. However, Binance didn’t register itself even after a public warning.
- Since Binance has a “very large number of customers in the Netherlands,” it is also one reason for the bank to impose the heavy penalty.
- Prolonged Violations by Binance also led to an increased penalty.
DNB also mentioned that Binance has applied for registration. The bank also reduced the total amount by 5% as the exchange has been complying with the law and is being transparent about is business operations.
Small history about Binance
Binance is the largest crypto exchange in the world according to the daily trading volume of cryptocurrencies.
Changpeng Zhao founded the company in the year 2017. It was initially based in China but after the strict regulations from the Chinese Government had to shift its base. And currently, it is based on Caymans Island.
The company has launched two cryptocurrencies; one is Binance Smart Chain which uses ‘Proof of Staked Authority,’ which is a combination of proof of stake and proof of authority.
Another one is BNB, a cryptocurrency coin that powers the BNB chain ecosystem. It can also be used for a variety of applications and use cases.
Afterwords:
The regulatory implications related to cryptocurrencies always keep the exchanges on their toes.
It is not the first time Binance has faced such a legal issue. It has been resisted by big countries like Japan, the United States of America and the United Kingdom.
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