• Coinbase Incurs $3.6M Dutch Fine for Providing Unregistered Crypto Services
• The Dutch Central Bank imposed the hefty fine due to non-compliance violations
• Coinbase plans to protest the fine, citing that they are not in violation of anti-money laundering and terrorist financing norms
American crypto exchange Coinbase recently received a hefty fine of $3.6 million from the Dutch central bank for providing unregistered crypto services to customers in the country. The De Nederlandsche Bank (DNB) said that the company had violated Dutch law, which requires that crypto providers register under anti-money laundering and terrorist financing norms.
The DNB cited Coinbase’s Dutch customer base and competitive advantage gained from not paying supervisory fees as reasons for the increased fine. Coinbase plans to protest the fine, citing that they are not in violation of anti-money laundering and terrorist financing norms. The company has said that it has been fully compliant with the Dutch Central Bank’s regulations since September 2022.
In response to the fine, Coinbase released a statement saying that it had „worked diligently to ensure compliance“ with the Dutch central bank’s regulations, and that it had been fully compliant since September 2022. The statement added that the company had „made significant investments in resources, personnel, and technology to ensure we meet the highest standards of compliance.“
The governing bank has also said that Coinbase’s „degree of culpability of the non-compliance“ warranted an increased fine. Coinbase is currently considering how to contest the fine, and has stated that it will continue to invest in resources and personnel to ensure it meets the highest standards of compliance.
The hefty fine imposed by the Dutch central bank serves as a reminder to crypto exchanges and other businesses providing crypto services to be aware of the legal frameworks they are operating in. As crypto continues to gain mainstream adoption, it is essential that companies remain compliant with regulations in order to protect their customers and the crypto ecosystem as a whole.