The Dutch Central Bank said it fined Binance Holdings 3.33 million euros ($3.6 million), as the world’s largest cryptocurrency exchange operator faces increased regulatory scrutiny.
The fine was imposed in April after Binance offered crypto services in the Netherlands without the required registration with the central bank, the monetary authority announced in a statement on Monday.
Binance’s global expansion over the past few years has drawn the attention of regulators across the world. In the US, Binance is being investigated for potential securities violations. A long list of governments including South Africa, Thailand and the Cayman Islands have warned the company it wasn’t allowed to operate locally.
The fine was reduced partly because a registration application has now been made and “Binance has been relatively transparent about its business operations throughout the entire process,” the Dutch central bank said. The company objected to the fine on June 2.
Dutch authorities ruled in May 2020 that any company seeking to offer crypto services in the Netherlands must comply with the country’s laws against money laundering and terrorism financing. The central bank publicly warned Binance last year.