The world’s largest crypto exchange has offered its services without the necessary approval, according to the Dutch central bank-
(Photo: Reuters)
Frankfurt The Dutch central bank has imposed a fine of 3.33 million euros on the Binance crypto exchange. Reason for the penalty: Binance offered its services without the necessary permission from the local authorities. The central bank had already warned last August that Binance was operating in the Netherlands without the necessary permits. This means that the trading platform violates anti-money laundering and anti-terrorist financing regulations.
According to the central bank’s announcement, the minimum fine for Binance’s offense was two million euros, and the fine was increased because the crypto platform had recruited a large number of customers in the Netherlands. In addition, the exchange, through which investors can trade cryptocurrencies such as Bitcoin or Ethereum, has gained an unfair competitive advantage because it has not paid any duties to the Dutch central bank. The fine was originally imposed in April, but Binance appealed in June.
With a daily trading volume of almost $14 billion, Binance is the world’s largest provider of crypto services. Investors can choose from over 300 different cryptocoins. According to the platform, it has a total of 4,500 employees worldwide. The entire crypto scene is currently struggling with severe turbulence and a market shakeout. The most popular digital currency, Bitcoin, has lost a good half of its value in the past six months.
Germany is for binance another small location. That should change, with the blessing of the authorities. In May, Binance founder Changpeng Zhao announced in an interview with the Handelsblatt that his company was trying to get a license for its own custody of cryptocurrencies in Germany.
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Before that, Binance also had trouble with the regulator in Germany. Last year, the Bafin accused the local offshoot of the crypto exchange of having offered a new share-based investment product without being able to produce the required prospectuses. presented in October binance the controversial offer.
>> Read here: Despite the crash – In the USA, trust in cryptocurrencies prevails
Recently, there have been allegations that Binance has been trading for customers in Iran for years despite US sanctions. In interviews with the Reuters news agency, seven traders said they had circumvented the US government’s ban.
Until last September, they were still using their Binance accounts for the illegal business. Four years ago, the United States unilaterally withdrew from the 2015 nuclear deal with Iran under then-President Donald Trump, while at the same time imposing severe economic sanctions on the country.
More: Binance boss Changpeng Zhao – billions in losses without regrets