Binance has remained resilient despite the ongoing changes in the market. Its head Changpeng Zhao has expressed his trust in the company and shared plans to expand further. He was one of those CEOs who announced more vacancies instead of layoffs. Along with that, Binance also announced support for companies struggling due to financing problems. Expansion of business has been one of its prime motives of Binance, and they have been successful so far.
It has become one of the few leading cryptocurrency exchanges across the globe. As Europe has begun implementing crypto-friendly policies, various exchanges and service providers have utilized this opportunity. Binance also took the step forward and was issued crypto assets service provider license in Spain. But it saw a setback as Dutch Central Bank fined it.
Here is a brief overview of Binance’s expansion in the Netherlands and why it was fined.
Binance and its plans for expansion
Binance has seen considerable growth and is now seen as a dominant giant. Its use across the globe has brought its ambitions for furthering its services. The regulation of crypto has brought opportunities on the one hand, while on the other hand, it has brought hurdles for some. The latter came from fines for some exchanges and service providers. Binance is the recent victim of this problem as the Dutch Central Bank fined it.
According to the recent regulations, various countries require service providers and exchanges to register themselves. US SEC head also recently reiterated that service providers would have to brace themselves for strengthened regulations. The Dutch regulator has used the same claim to fine Binance, saying the latter operated in the Netherlands without any license. Binance remains committed to European expansion and doesn’t see it as a black mark on its push.
The change has come as the requirements for disclosures to tackle money laundering and other illegal activities. Terrorism financing networks have been one of the basic reasons why central banks have looked for strong regulations.
Fine from Dutch Central Bank
De Nederlandsche Bank (DNB) has said it has fined Binance of 3.3 million Euro for not operating according to the legal requisites. The company failed to follow the regulations and register itself as a crypto service provider. According to the statement, DNB warned the company in August 2021 that it was operating without any approval and would need a license. It continued like this until it was fined in August 2022.
There are three levels of fines according to the regulations of the country. Binance has been fined according to the third level of fines. The charge was the gravity and culpability of the non-compliance. According to the regulator, the breach has taken place for a prolonged time, so it deserved a fine accordingly. According to CoinGecko data, Binance is the biggest crypto exchange worth $15.5 billion. So, the regulator took all these considerations accordingly and fined it.
Binance has previously boasted because of its no global headquarters, and it operated without considering national regulators. But as the regulations strengthen, it has faced problems. According to the DNB statement, it requested the review of the decision on 2 June. The review was considered, and the fine has been reduced by 5% as it has applied for a license.
Binance has faced a fine of more than 3 million euros from Dutch regulator DNB. The reason for the fine was its operation without a license. According to the regulators, it had been warned previously to acquire the license, which it didn’t. Later, the regulator was forced to slap a fine requested for review in June. Now, it has been reduced by 5% due to its application for a license.