The Dutch central bank has recently fined cryptocurrency firm Coinbase around $3.6 million worth of euros for providing unregistered crypto services to local customers.
As stated by the authority, Coinbase operated illegally between November 15, 2020, and August 24, 2022. On September 22, 2022, Coinbase did finally receive the proper registration; nevertheless, the DNB claimed that during that time, the company had benefited from a competitive edge by not paying supervisory costs.
According to the Anti-Money Laundering and Anti-Terrorist Financing Act, businesses seeking to provide cryptocurrency services in the Netherlands must register with DNB.
De Nederlandsche Bank (DNB) disclosed in a statement that the severity of the non-compliance led to an increase in the penalty from a base sum of $2.18 million.
Another reason why the fine was raised is due to Coinbase’s size as one of the biggest cryptocurrency exchanges in the world and the volume of Dutch consumers it services. The total cost was later, however, decreased by 5% to reflect the fact that the company had always wanted to finish registration.
Nonetheless, Coinbase spokesperson stated that they are thoroughly mulling over raising objections and appeals process — adding that the company takes jurisdiction compliance very seriously and will keep providing new and existing Dutch users with safe and trusted services.
Previously, DNB has also fined crypto exchange giant Binance 3.3 million euros for allegedly providing services in the country without the relevant license.
