Binance, one of the largest crypto exchanges, fined during ongoing crash

Cryptobros have had a bad few months with the ongoing crypto market crash. Individual investors are not alone, as crypto companies like Binance are also haemorrhaging money.

As if losing money from the ongoing crypto crash wasn’t bad enough, Binance has been fined $3.3 Million by the Dutch Central Bank due to offering crypto services in the Netherlands without a proper license.

Binance set to lose even more money

According to Decrypt, De Nederlandsche Bank fined Binance a whopping 3.3. Million Euros, which equals $3.3 million, for offering services without a license. The price is actually an increase from the base amount of 2 million Euros due to how influential Binance is to the country.

Binance also didn’t register under the Anti-Money Laundering and Anti-Terrorist Financing Act since May 21, 2020. This is something that The Dutch Central Bank requires from all virtual asset service providers (VASPs).

“In addition, Binance enjoyed a competitive advantage because it did not pay any levies to DNB and did not incur any other costs related to ongoing supervision by DNB,” reads a translated version of the statement.

Binance objects to fine (but registers anyway)

DNB said the fine was imposed on Binance back on April 25 but the company refused to comply on June 2. However, the fine was moderated by 5% since Binance has submitted a registration application that is currently being assessed, hoping to smooth things over with the country’s bank.

“Today’s decision marks a long-awaited pivot in our ongoing collaboration with the Dutch Central Bank,” the spokesperson said via email (via CNBC). “While we do not share the same view on every aspect of the decision, we deeply respect the authority and professionalism of Dutch regulators to enforce regulations as they see fit.”

Expect updates on the Binance case soon and if the fine gets lifted or, for the crypto company’s sake, decreased. Considering how the crypto crash is still ongoing, we imagine this won’t be a simple transaction for the company.

This Article's Topics

Explore new topics and discover content that's right for you!

Have an opinion on this article? We'd love to hear it!