• Crypto exchange Coinbase has been fined $3.6 million by the Dutch central bank for offering crypto services to customers in the Netherlands without registering there.
• Dutch law requires crypto providers to register under anti-money-laundering and terrorist-financing norms.
• The base amount of the fine has been increased due to the severity and degree of culpability of the noncompliance.
Crypto exchange Coinbase has been hit with a hefty fine from the Dutch central bank for providing services to customers in the Netherlands without registering there. According to Dutch law, crypto providers must register under anti-money-laundering and terrorist-financing norms.
The fine imposed on Coinbase amounts to 3,325,000 euros ($3.6 million). The Dutch central bank said that the base amount of the fine has been increased due to the severity and degree of culpability of the noncompliance. It also took into account the scale of Coinbase’s Dutch customer base and the competition in the crypto sector in the Netherlands.
Coinbase has come under fire in recent years for its lack of compliance with various regulations. Last year, the crypto exchange was fined $6.5 million by the U.S. Commodity Futures Trading Commission for overstating its trading volumes and disclosing inaccurate information about its operations. Coinbase also received a $25 million penalty from the U.S. Securities and Exchange Commission for admitting it had violated federal securities law.
Now, Coinbase must pay the Dutch central bank a hefty fine for failing to register with the regulator, a requirement that all crypto providers in the Netherlands must adhere to. The exchange is considering filing an objection to the penalty, though it is unclear whether the fine will be overturned.
The news of Coinbase’s fine comes as regulators around the world are increasing their scrutiny of the crypto industry. Governments are ramping up their enforcement of crypto regulations, as more and more people turn to digital currencies as an alternative to traditional financial services.
Coinbase’s fine is a reminder that crypto exchanges must comply with the rules and regulations set by their respective regulators. All crypto providers must take the necessary steps to protect their customers and ensure that their operations are in line with the law. Failure to do so could result in hefty fines, which could put a strain on the crypto industry.