Coinbase fined €3.3 million in Netherlands, exchange considering appeal
A fine of €3,325,000 (over $3.6 million) has been imposed on Coinbase Europe Limited on 18 January 2023 by De Nederlandsche Bank (DNB) which is registering with the central bank. According to the regulator, this constitutes non-compliance with Dutch regulations as companies that want to provide crypto-related services can only register with The Netherlands Bank under the country’s Anti Money Laundering and Antitrust Financial Act and It is mandatory for them to register. The monetary authority elaborated that the amount of fines in this category would amount to 2 billion Euros, with the fines in the case of Coinbase being further increased “due to the seriousness and degree of non-compliance”. Surely the Netherlands bank has taken into account the fact in increasing the fine that Coinbase is one of the largest gift provider services globally and also has a large number of customers in the Netherlands who also use crypto services. and at the same time the bank also states that it has not paid any supervisor fee to the exchange.
The Dutch Central Bank highlights that Coinbase operated without registration for a long period of time between November 2020 and the end of August 2022, emphasizing that this is definitely considered a serious non-compliance And with this we can outline it in terms of a problem.
Although the Netherlands Bank reduced the fine to five percent, it was stated that Coinbase was always to register in the Netherlands and was acting for the same purpose which it did on September 22 last year. The requirement to register or require registration for a crypto service provider was introduced in May 2020 and has since been introduced with the entire system. Certainly the lack of registration meant that the global exchange was unable to report unusual transactions to the Financial Intelligence Unit during that period, and the transfer now went unnoticed or focused by investigative authorities. Not done as stated by the bank.
Coinbase will be able to object to the fine until March 2, 2023, and will have the right to do so, and the exchange was quoted as saying by Reuters that it does not agree with the Netherlands Bank’s decision, adding that any criticism of their de facto services Has not been done and with this the crypto company is still considering the appeal. Sure enough, in July 2022, De Nederlandsche Bank implemented a measure against Binance and imposed a fine on the world’s largest crypto exchange for even starting or providing services in the Netherlands without the necessary registration. His amount was valid in Euro and on the basis of that this penalty was fixed.