B

inance has been the largest provider of cryptocurrency services worldwide, with an average daily trading volume exceeding USD 13 billion since its inception in 2017. However, it recently came under supervision from the Dutch Central Bank, which fined them for failing to meet new regulations on registration obligations and other infractions committed over a lengthy period operating in the country.

The known currency has been offering its services in the Netherlands since August 2017 but has never applied for the necessary licenses. The exchange offers trading in over 50 different cryptocurrencies, including Bitcoin and Ethereum. It has enjoyed a competitive advantage because it has not paid any levies to De Nederlandsche Bank (DNB).

DNB believes that Binance's activities have created risks for Dutch consumers and financial stability. The fine is intended to address these risks and to level the playing field for licensed providers of crypto services. Under Dutch law, any company providing financial services must be registered in the Central Bank.

This is not the first time the currency exchange has been in hot water with regulators. Japanese authorities also warned the company of operating without a license and were also forced to shut down its services in China.

The DNB's actions come as several other European countries have taken steps to crack down on unlicensed crypto companies.

It is unclear at this time if Binance will be able to continue operating in the Netherlands. So far, the DNB's fine is one of the largest ever issued by a financial regulator to a crypto company.

What do you think about the Dutch Central Bank's fine against Binance? Will it be a downside of the exchange? 

Source:
https://www.coindesk.com/business/2022/07/18/binance-fined-over-33m-by-dutch-central-bank/ 
Photo:
Binance CEO Changpeng Zhao (CoinDesk archives)

Posted 
Jul 18, 2022
 in 
Crypto News
 category

More from 

Crypto News

 category

View All

Join Our Newsletter and Get the Latest
Posts to Your Inbox

No spam ever. Read our Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.