Binance hit with £2.8m fine by Dutch bank for not following registration requirements

Binance was fined €3.3m (£2.8m) by the Dutch Central Bank for offering crypto services in the Netherlands without following registration requirements, according to an official release today.

De Nederlandsche Bank (DNB) requires virtual asset service providers like Binance to register with it under the Money Laundering and Terrorist Financing (Prevention) Act.

DNB had earlier issued a public warning concerning the world’s biggest crypto exchange in August last year. The fine was raised from €2m (£1.69m) due to “increased seriousness and culpability,” of the violations, the Bank said. 

These took place for over a year, from May 2020 when date registration obligations were introduced until at least December 2021 when the DNB investigation ended. 

Binance objected to the fine in June 2022. A Binance spokesperson said to City PM, “Today’s decision marks a long-awaited pivot in our ongoing collaboration with the Dutch Central Bank. While we do not share the same view on every aspect of the decision, we deeply respect the authority and professionalism of Dutch regulators to enforce regulations as they see fit.”

“Binance has already reached a critical milestone in meeting Dutch regulatory requirements by applying for a registration as a crypto service provider through a locally established entity, Binance Nederland BV.”

DNB said it moderated the fine by 5 per cent, partly due to a registration application having been submitted by Binance and because the exchange has been “relatively transparent about its business operations throughout the process.”

The Bank said this registration is currently being assessed.

The registration requirement for crypto service providers was introduced because crypto services “pose a high risk of money laundering or terrorist financing,” the release said. “This is related to the anonymity associated with crypto transactions.”

DNB did not immediately respond to City PM’s request for comment.