- The DNB’s General Fine Setting Policy was used when calculating the amount.
- DNB’s investigation took longer than expected, resulting in higher penalties for the violation.
The Dutch Central Bank (DNB) fined Binance 3.3 million euros in April 2022. Exchanges that provide services to Dutch people without legal registration face fines. The DNB’s General Fine Setting Policy was used when calculating the amount.
Baseline Fine of 2M Euros
Registration under the Money Laundering and Terrorist Financing (Prevention) Act is required for companies that want to do business in the Netherlands and provide services. A baseline fine of 2 million Euros is imposed on anybody found guilty of a crime. A considerable number of Binance customers in the Netherlands is to blame for an increase in fees. DNB’s investigation took longer than expected, resulting in higher penalties for the violation.
However, the DNB lowered the penalties by 5% since Binance has filed for the relevant licenses. This isn’t the first time the exchange and the Dutch central bank have had a falling out. The DNB issued a public warning against Binance on August 18, 2021, on the same. Binance is one of the world’s most popular cryptocurrency exchanges. Regardless, the corporation has come under fire from local authorities.
A letter was recently submitted to the Philippine Department of Trade and Industry (DTI) for providing services inside the nation without the appropriate documentation. Infrawatch PH, a regional think tank, submitted the letter. Thanks to the agency, the DTI has been alerted about Binance’s local advertising efforts. The investigation group’s convener, Terry Ridon, said that Binance’s promotional offers are spread throughout various websites, social media, and other local communities.
CZ, the CEO of Binance, traveled to the nation to resolve the issue. Since then, the company has sought the required licenses to keep operating.
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