Binance, the largest crypto platform in the world, has been fined more than 3.3 million euros by De Nederlandsche Bank (DNB). The company had not registered before it started working in our country and is therefore being penalized.
Companies that offer crypto services in the Netherlands must register. Binance has not done so and therefore already received a warning last year.
That did not lead to improvement and that is why the company was fined EUR 3,325,000 a few months ago. This fine was already imposed in April, but DNB has only now announced it. Binance has appealed the decision.
Platform has many customers in the Netherlands
The market regulator says when determining the fine, it has been taken into account that the platform is the largest crypto party in the world. Binance accounts for a daily trading volume of $13.7 billion (13.5 billion euros). In addition, it would have very many customers in the Netherlands.
A registration is important, because then the platform can report suspicious transactions. The trade in digital currencies is relatively often used by criminals, because the transactions leave little trace. The fact that Binance has not registered means that “a large number of unusual transactions may remain out of sight of the investigative services”, explains DNB.
Another factor is that the platform has an advantage over competitors who have registered, because they incur additional costs. Binance has already applied for a registration.
Multiple regulators are critical of Binance
The platform has long had a reputation for doing anything to get out of surveillance. For example, the company is officially located in the Cayman Islands. There is an office in Singapore, but the company has no official headquarters.
Founder Changpeng Zhao previously said this is because the company operates in a decentralized manner, just like the cryptocurrencies it trades. Several regulators around the world have already told Binance that its methods are unacceptable.