The Dutch central bank has fined the biggest cryptocurrency exchange Coinbase roughly €3.3 million for administrative violations. The rationale for the punishment is that the exchange previously offered unregistered crypto services in the Netherlands. The central bank has given Coinbase until March 2 to contest the penalties.
On 18 January 2023, De Nederlandsche Bank (DNB) imposed an administrative fine of €3,325,000 on Coinbase Europe Limited (Coinbase). The fine was imposed because Coinbase provided crypto services in the Netherlands in the past without registration with DNB, which is in non-compliance with the law.DNB Stated on it’s website
Under the Anti-Money Laundering and Anti-Terrorist Financing Act, businesses seeking to offer crypto services in the Netherlands must register with DNB. Due to the heightened danger of money laundering and terrorism funding linked with crypto services, the central bank implemented the registration requirement for crypto exchanges and other crypto service providers on May 21, 2020. Specifically, this relates to the anonymity of crypto transactions.
The central bank said in its statement that the basic sum for this category of fines is €2 million, with a minimum of €0 and a maximum of €4 million. The basic amount has been enhanced owing to the severity and degree of guilt of the noncompliance, the Bank added. In addition, DNB took into consideration the fact that Coinbase is one of the leading crypto service providers and has a considerable user base in the Netherlands.
Coinbase disagrees with DNB’s enforcement order, which is based on the time it took for Coinbase to obtain our registration in the Netherlands and includes no criticism of our actual services.Coinbase spokesperson said
Coinbase, the bank said, “enjoyed a competitive advantage in that it has not paid any supervisory fees to DNB or suffered any expenditures in connection with DNB’s routine supervision duties.”
However, DNB says it reduced the fine by 5% because Coinbase had always intended to obtain registration. The crypto giant has until March 2 to appeal the fine.