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The Dutch Central Bank has fined crypto exchange $3.3 million for offering its services without the necessary permission.
The central bank released a statement saying the exchange had breached its rules by offering crypto services in the Netherlands without a legally required registration with the bank, which is prohibited.
Last Aug, the central bank issued a public warning regarding Binance, calling its offerings “illegal.”
The regulator noted that the base amount of the fine was increased as a result of "increased severity and guilt". However, he stated that the fact that the trade had now sought regulation weighed in its favor, reducing the total amount of the fine payable.
The censorship of the Dutch watchdog shows the division between European financial regulators regarding their approach to trading.
In the U.K., the Financial Conduct Authority said it did not consider BINANCE to be capable of being supervised, warning its “complex and high-risk financial products” posed “a significant risk to consumers.”
Binance is the largest cryptography service provider in the world, with over $13.7 billion in daily exchanges and a large number of clients in the Netherlands.
A spokesperson for Binance Reuters that the fine marked a “pivot in our ongoing collaboration” with the Dutch regulator. The bank said that, even though it still has not approved the registration of the stock exchange, he reduced the original 5% fine because the company "demonstrated a fair degree of transparency in its activities throughout the process".
Plans to expand Binance Europe.
In the meantime, countries such as this have recently given Binance the green light. However, the European Parliament and EU states’ recently decided to tighten crypto rules with the new Markets in Crypto-assets (MiCA) law adding obstacles to the expansion plans of exchanges.
According to documents filed by the Dutch Chamber of Commerce, binance nederland bv was created in October 2021 and belongs to binance holdings of Ireland as of December 24, 2021.
The stock market has declared that it will appeal the fine.
