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Cryptocurrency exchange,  Binance has been ordered to pay fine in the region of $3M over illegal operations in Netherlands.

The Dutch Central bank has revealed that the organisation has a very large number of followers in the European nation, the cryptocurrency exchange is facing strict penalties as it failed to obtain mandatory regulatory approval from the Dutch Central bank.

The financial Body has revealed that organisations that are offering crypto exchange services are obliged to register and obtain regulatory approval with the central bank, this is in compliance with the Money laundering and Terrorist Financing Prevention Act. The financial body has also revealed that the cryptocurrency exhange had previously been issued a public warning on August 18, 2021.

According to an anonymous insider, the financial body had issued a bigger penalty to Binance due to the large trading volumes carried out by the cryptocurrency exchange, according to him, Binance had a “very large number of customers in the Netherlands,” while its daily trading volumes amounted to “$13.7 billion.”

The increased penalty was also due to prolonged violations by Binance, the Dutch Central Bank stated. According to the bank, the violations occurred from May 2020 — when the Dutch central bank introduced the registration obligation — until the bank closed the investigation in December 2021. “Dutch central Bank, therefore, considers these violations to be very serious,” the regulator noted.

The central bank also mentioned that Binance has submitted an application to register, and the registration process is now being addressed. As the exchange has moved to comply with the law and has been transparent about its business operations, the Dutch  Central bank reduced the total amount of the fine by 5%, the announcement notes.

What to expect from this

While Binance had failed to obtain mandatory regulatory approval from the Dutch Central Bank, its spokesperson has confirmed that the cryptocurrency exchange would get to obtain regulatory approval from the Dutch Bank while pursuing a more traditional operating model in the Netherlands.

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