Binance Fined €3.3M by Dutch Central Bank for Operating Without Registration

Binance, the world's largest cryptocurrency exchange, on Monday (July 18) was slapped with a 3.3 million euro ($3.4 million) fine from the Dutch central bank for operating in the Netherlands without registration.

The penalty came after an August 2021 warning from De Nederlandsche Bank (DNB) last year that Binance had offered crypto services in the country without authorization.

The company was dealt a category 3 fine — the most stringent of DNB's three levels of enforcement. The charge came in at the upper limit of the 2 million euros to 4 million euros maximum the bank can impose "due to the gravity and degree of culpability of the non-compliance," DNB said in a statement.

The breach took place over a "prolonged period," the central bank said, spanning from May 21, 2020, until at least Dec. 1, 2021. "This is why DNB considers the non-compliance to be very grave," the regulator said.

DNB said it also took into account Binance's size and "very substantial customer base in the Netherlands." The company is the biggest crypto exchange globally, with daily spot trading volumes of $15.5 billion, according to CoinGecko data.

Binance filed an appeal against the fine on June 2, DNB said.

The Dutch fine was moderated 5% lower because Binance applied for registration and was "relatively transparent" about its operations during the process, DNB said. The central bank says it is still reviewing Binance's application.