Summary:
Netherlands’ top financial regulator, the Dutch Central Bank (DNB), issued a €3.3 million fine to leading crypto exchange Binance on Monday, over failure to operate as a registered and regulated entity in the country.
The news was revealed via an official statement from the DNB on Monday and stated that Binance is not yet a registered business in the Netherlands, despite having a considerable customer base.
According to the DNB, Changpeng Zhao’s local subsidiary Binance Nederland BV offered cryptocurrency trading services without being registered under the regulators’ rules.
The fine is an estimated $3.4 million USD.
In addition, Binance has enjoyed a competitive advantage because it has not paid any levies to DNB and has not had to incur other costs in connection with ongoing supervision by DNB.
However, the DNB also stated that the fine was slashed by 5%, thanks to a cryptocurrency business registration application submitted by Zhao’s crypto exchange. This aligns with the mandatory registration policy introduced in May 2020.
A spokesperson for the exchange told sources that the application is currently in review and that CZ’s platform is after a crypto service provider license.
Despite the development, CZ’s company sees progress on its European expansion roadmap. A representative told The Block that Monday’s news highlights a key breakthrough in ongoing conversations with the DNB.
Zhao’s company has indeed clinched pivotal approvals in other European and G7 jurisdictions including France
, Italy, and Spain, as EthereumWorldNews reported.There are also rumors that Zhao’s company could set up shop in Germany soon.