Binance Leaves Netherlands: Regulatory Setback Forces Exit
- Binance Leaves Netherland
- Official Announcement
- What is De Nederlandsche Bank (DNB) role in Crypto
- History of DNB & Binance Drama
Starting next month, Binance, a leading global cryptocurrency exchange, will cease trading services for Dutch users as it has not obtained a license from De Nederlandsche Bank (DNB) to operate in the country. New users from the Netherlands are no longer able to register, and after July 17, existing users will only be allowed to withdraw their assets from the platform.
DNB imposed a hefty fine of over 3.3 million euros on Binance last year for operating without the necessary registration. The central bank highlighted Binance's extensive customer base in the Netherlands.
DNB fined Binance millions of euros for non-compliance with registration requirements from May 2020 to December 2021. DNB did not disclose whether additional fines were pending or the reasons for Binance's non-compliance. Registration is essential for combating money laundering and terrorist financing, which other crypto providers in the Netherlands have fulfilled.
Binance Urges Dutch Users to Withdraw Assets, Commits to Transparency
Binance has advised users to withdraw their assets from their accounts, expressing their disappointment with the situation. The company is committed to maintaining a productive and transparent relationship with Dutch regulators.
Official Announcement
What is De Nederlandsche Bank (DNB) role in Crypto
De Nederlandsche Bank (DNB) plays a significant role in the regulation of cryptocurrencies in the Netherlands. As the country's central bank, DNB is responsible for overseeing and supervising financial institutions, including those involved in cryptocurrency activities. Here are some key aspects of DNB's role in crypto regulation:
1. Licensing and Authorization: DNB is responsible for granting licenses and authorizations to cryptocurrency exchanges and other crypto-related businesses operating in the Netherlands. They ensure that these entities comply with regulatory requirements and meet necessary standards.
2. Anti-Money Laundering (AML) and Know Your Customer (KYC): DNB enforces AML and KYC regulations in the crypto sector. They set guidelines and requirements for cryptocurrency businesses to prevent money laundering, terrorist financing, and other illicit activities. DNB conducts periodic checks and audits to ensure compliance.
3. Supervision and Oversight: DNB supervises and monitors the activities of crypto-related businesses to ensure they operate in a safe and sound manner. They assess risks associated with cryptocurrencies and implement measures to protect consumers and maintain financial stability.
4. Policy Development: DNB contributes to the development of national and international policies related to cryptocurrencies. They collaborate with other regulatory bodies, such as the Financial Markets Authority (AFM), to establish coherent and effective regulatory frameworks for the crypto industry.
5. Consumer Protection: DNB works to protect consumers who engage in cryptocurrency transactions. They provide guidance and warnings about potential crypto risks and scams to enhance public awareness and ensure a fair and transparent market.
History of DNB & Binance Drama
Binance slapped with a hefty fine by the Dutch Regulators
The world's largest cryptocurrency exchange, Binance, has been fined over 3.3 million euros by De Nederlandsche Bank (DNB), the Dutch central bank. The fine was imposed as Binance provided crypto services in the Netherlands without fulfilling the mandatory registration requirements set by DNB. The central bank described this violation as "very serious" in nature.
Despite a warning issued by the central bank in August of the previous year regarding Binance's illegal practices, the company did not respond promptly. The Dutch central bank, DNB, stated that Binance remained non-compliant with regulations for an extended period, starting from May 2020 when registration obligations were introduced by DNB, and continuing at least until early December when the regulatory investigation concluded.
Reference
Dutch regulator fines crypto exchange binance €3.3 million (2022) NL Times. Available at: https://nltimes.nl/2022/07/18/dutch-regulator-fines-crypto-exchange-binance-eu33-million (Accessed: 19 June 2023).
Cryptocurrency exchange binance leaves the Netherlands after failing to get license (2023) NL Times. Available at: https://nltimes.nl/2023/06/16/cryptocurrency-exchange-binance-leaves-netherlands-failing-get-license#:~:text=Binance%2C%20one%20of%20the%20world’s,to%20operate%20in%20the%20country. (Accessed: 19 June 2023).