The European division of cryptocurrency exchange Coinbase has been fined €3.3 million ($3.6 million) by the Dutch central bank for failing to complete registration requirements before providing services in the country.
Before starting operations in the Netherlands, the exchange failed to acquire the required registration to provide services there. According to the De Nederlandsche Bank (DNB), the size of Coinbase as a business and the fact that it has a large number of users in the Netherlands were taken into consideration.
According to reports, 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 advantage by not paying supervisory fees.
The Dutch Central Bank stated:
“Coinbase has enjoyed a competitive advantage in that it has not paid any supervisory fees to DNB or incurred other costs in connection with DNB’s regular supervision activities.”
De Nederlandsche Bank stated that the severity of the non-compliance led to an increase in the penalty from a base amount of $2.18 million.
Similar accusations were made against Binance Holdings Limited in 2021, and as a result, the exchange was fined more than 3 million euros for the infringement.
According to the Anti-Money Laundering and Anti-Terrorist Financing Act, businesses seeking to offer cryptocurrency services in the Netherlands must register with DNB.
The DNB’s judgment, according to Coinbase, does not criticize their actual services, and Coinbase added that it disagreed with it and was considering appealing. According to Coinbase, the order is determined by how long it took the company to register in the Netherlands.
Additionally, Coinbase stated that it is dedicated to compliance in all jurisdictions in which it conducts business and that it will keep offering new and existing Dutch users safe and trusted services.
Earlier this month, Coinbase announced that operational restructuring would result in a 20% reduction in staff. In response to the ongoing impacts of the bear market trading downturn, Coinbase stated on January 18 that it will cease operations in Japan.
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