The Dutch financial regulator has fined cryptocurrency company Coinbase €3.3 million (US$3.6 million) for providing crypto trading services without being registered. The Dutch central bank, De Nederlandsche Bank (DNB), which oversees financial activity in the Netherlands, issued the fine, knowing that Coinbase disagreed with its policies.
Coinbase did not get the required registration before it began its operations in the Netherlands as required by local regulations. This prompted the bank to claim that Coinbase wasn’t compliant with regulations when it offered financial services to Dutch consumers.
Before ultimately deciding to issue the fine, the DNB revealed that it also considered the company’s size as one of the mitigating factors. The bank imposed the penalty for the company’s non-compliance, spanning November 2020 to August of last year. Additionally, the bank also took into account the huge number of Coinbase users within this region.
To comply with anti-money laundering rules, crypto exchanges and financial service providers in the Netherlands must register with the authorities before operating. Coinbase has said that it doesn’t agree with the Dutch central bank’s enforcement order, which is why the company is considering its response and appeals process. Coinbase has until March 2 to submit an objection to the Dutch central bank’s administrative penalty.
Further, the company emphasized its commitment to complying with all laws in all jurisdictions and ensuring that its services are safe and trusted for all Dutch clients, both new and existing, regardless of their location.