According to news reports, Binance has received a fine of over $3.3 million. This was after the exchange operated in Netherland without securing a license from the Central Bank.
Furthermore, the central bank stated that the crypto exchange violated its regulations. According to law, crypto exchanges operating in Netherland have to register with the central bank.
However, this was something Binance failed to do since entering the Netherlands in 2021. Besides, the bank had warned the citizens about the crypto exchange in August 2021.
Regulators Wary Of The Financial Products Offered By Binance
The financial institution even referred to the crypto services it provides as “illegal.” Also, the regulator made it clear that the “enhanced culpability and severity” was why the regulator raised the fee.
However, it said the bank reduced the overall fee owed since Binance had applied for a license. The criticism by the Dutch regulator highlights the divergent perspectives European banking authorities have about Binance.
In the UK, the Financial Conduct Authority said regulators should caution Binance. This is because of its high-risk and complex financial products are a danger to users.
According to daily trading rate, Binance is the biggest cryptocurrency service provider in the world. It records a trading volume of more than $13.7 billion and many clients in the Netherlands.
A representative for Binance said the penalty represented a change in its dealings with the Dutch authority. Also, the representative said the bank had reduced the fee because the firm was transparent.
Binance Continues With Expansion Plans Across Europe
In the meantime, Binance has secured new licenses to operate in various nations. They include Italy, Spain, and France. Besides, a recent regulation in the EU has made it difficult for exchanges to expand.
This is the Markets in Crypto-assets (MiCA) regulation. The EU member states and the European Parliament recently passed the legislation.
Meanwhile, October 2021 was when Binance Nederland BV was founded. However, on December 24th, 2021, Binance Holdings of Ireland secured its ownership.
This is according to documentation with the Dutch Chamber of Commerce. However, Binance has declared that it would contest the fine.
This is not the first time the firm is coming under regulatory heat. Last month, Reuters had accused the exchange of fostering money laundering activities.
However, Changpeng Zhao, CEO of Binance, denied the claims. Also, there is the case of insider trading in the company. However, Binance is one company that has weathered the storm of the crypto crisis.