Dutch Central Bank Issues Warning to Binance Alleging Illegal Activity

Dutch Central Bank becomes the latest regulator to issue a warning to Binance, as the exchange signals they will redouble compliance efforts.

By
Dardania Havolli
on
August 20, 2021
Category:
BSC News

Binance in Firing Line

De Nederlandsche Bank (DNB) has warned Binance over offering crypto services in the Netherlands without the appropriate legal registration with the DNB. 

The DNB issued the statement on the 18th of August and explained the warning pertains to Binance Holdings Ltd. as well as other Binanance entities offering crypto services in the Netherlands. 

“De Nederlandsche Bank (DNB) announces that Binance is providing crypto services in the Netherlands without the required legal registration with DNB,” said the official statement. “This means Binance is not in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act and is illegally offering services for the exchange between virtual and fiduciary currencies and it is illegally offering custodian wallets.” 

De Nederlandsche Bank is the central bank of the Netherlands, and the Dutch regulatory is just the latest European body to push back against the largest crypto exchange.

Source

Dutch Crunch for Binance 

Binance has stood firm in the face of the latest regulatory assertions from the Dutch Central Bank. They understand that many of the warnings that have been sounded from different financial institutions also offer an opportunity to bridge gaps. 

"We are aware of a notice by DNB about Binance in the Netherlands. As part of our commitment to redoubling our efforts in compliance, Binance is in the process of submitting an application for the required registration," a Binance spokesperson told The Block Crypto in an August 18 blog post. "We will be working constructively with DNB and hope to give a positive update in the near future."

Whether this work will indeed be ‘constructive’ remains to be seen, but an opportunity to clarify aspects of crypto trading within an influential European state may well turn out to be an opportunity. 

"Binance takes compliance very seriously and although we are not formally registered with DNB yet, we have a robust compliance program that incorporates tools and procedures to combat money laundering and terrorist financing," the spokesperson continued.

Indeed a sign of how seriously Binance takes compliance came through its publicised hiring of former IRS Special Agent, Greg Monahan. With over twenty years experience in the rigmarole of taxation, Monahan will surely be an important asset. 


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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives.

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