The world’s largest crypto exchange, Binance is working with state regulators across the world to gain legal status. However, central banks are still apprehensive about the crypto exchanges, and recently Dutch central bank fined a $3.4 million fine on Binance.
De Nederlandsche Bank (DNB) had previously warned Binance in August 2021 for offering crypto services without authorization. However, now the company has to deal with a category 3 fine — the most stringent of DNB’s three levels of enforcement.
According to the bank, the breach took place over a “prolonged period,” spanning from May 21, 2020, until at least Dec. 1, 2021.
DNB stated that they took Binance’s size into account as it has a “very substantial customer base in the Netherlands.” According to CoinGecko, the company is the biggest crypto exchange globally, with daily spot trading volumes of $15.5 billion.
A spokesperson from Binance has responded to this, saying:
“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 recently taken a shift to make “peace” with global regulators. This is so that the crypto exchange can operate globally without any trouble from state regulators. In fact, Binance CEO Changpeng Zhao has talked about it, often boasting of having no official global headquarters.
The recent change in focus has helped Binance secure licenses in France, Italy, and Spain.