This article was last updated on July 18, 2022
The world’s largest crypto exchange, Bitfinex, has been fined a total of €3 million by the Dutch financial regulator, DNB.
Binance, the largest cryptocurrency trading platform in the world, has been fined EUR 3.32 million by supervisory bank De Nederlandsche Bank (DNB). Despite the fact that registration is required, the firm has been operating in the Netherlands for some time. DNB places the burden squarely on Binance’s shoulders.
On April 25, the fine was enforced, but only now is it being made public. Last month, Binance filed an appeal.
To comply with anti-money-laundering and counter-terrorist financing regulations, cryptocurrency trading firms must register (Wwft). Since May 21, 2020, this duty has been in place.
The DNB warns that the use of cryptographic services might lead to money laundering or the financing of terrorism. Transacting with bitcoins, says the bank, provides further anonymity.
It’s a lot more money than normal. This “greater severity and responsibility” is what DNB refers to. The regulator has taken into account that Binance is a worldwide player with daily trades worth billions of dollars.
DNB’s supervision fees and other expenditures are also mentioned as reasons why Binance had a significant edge over its competitors in the market. The corporation received a warning on August 18 of last year. The registration procedure is now being handled by DNB.
Despite Binance’s disapproval of DNB’s decision in general, the exchange says it respects the method DNB oversees. In the Netherlands, the company intends to stick to a “more traditional business strategy.”