The cryptocurrency exchange Coinbase has been fined by the Dutch central bank for previously offering services without the required registration.
Coinbase is penalized by the Dutch Monetary Authority for operating without a license.
On January 18, 2023, De Nederlandsche Bank (DNB) assessed Coinbase Europe Limited an administrative punishment of €3,325,000 (more than $3.6 million).
The punishment for the exchange providing cryptocurrency services in the Netherlands in the past without registering with the central bank was described in a statement.
The regulator claims that this violates Dutch regulations since organizations seeking to offer services connected to cryptocurrencies are required to register with the DNB in accordance with the nation’s Anti-Money Laundering and Anti-Terrorist Financing Act.
“DNB increased the penalties in light of Coinbase’s position as one of the world’s biggest providers of cryptocurrency services.
Additionally, a sizable portion of Coinbase’s customers in the Netherlands use its cryptocurrency services, according to the bank, which also pointed out that the exchange hasn’t paid any supervision costs.
Additionally, the Dutch central bank emphasized that it views Coinbase’s protracted period of time operating without registration, from mid-November 2020 to late August 2022, as a serious non-compliance.
Since Coinbase had always intended to register in the Netherlands, which it did on September, the DNB also cut the punishment by 5%.
In May 2020, a registration requirement for cryptocurrency service providers was introduced.
The global exchange was not registered throughout the relevant period, which prevented it from informing the Dutch Financial Intelligence Unit of any odd activities, according to the bank, and these transfers may have gone unnoticed by the investigating authorities.
Reuters cited the exchange as saying it disagreed with the DNB’s decision, noting that it “includes no criticism of our real services.” The crypto business is currently thinking about filing an appeal.
The biggest cryptocurrency exchange in the world was also fined the same amount of euros for providing cryptocurrency services in the Netherlands without being registered.