The Dutch central bank has slammed Coinbase with a 3.3 million euros ($3.6 million) fine after finding the U.S-based exchange guilty of not meeting registration requirements before offering its services in the Netherlands.
Coinbase Fined $3.6M
Coinbase, one of the world’s biggest crypto exchanges, has been served a $3.6 million slap in the wrist.
According to a statement released on Thursday, the Dutch central bank has fined Coinbase on allegations that it had been operating while unregistered between November 15, 2020, and August 24, 2022.
The penalty increased from the base $2.18 million due to the severity of the non-compliance, De Nederlandsche Bank (DNB) explained. The regulator said it also took into consideration the size of Coinbase’s customer base in the Netherlands and the competitive advantage it had enjoyed by not paying supervisory levies. The total fine, however, was reduced by 5% due to the fact that the firm had always intended to finish registration.
Crypto companies intending to set up shop in the Netherlands are required to register under the Money Laundering and Terrorist Financing Prevention Act.
Coinbase Objects To The Fine
Coinbase now has until March 2, 2023, to object to the fine. However, the company has disagreed with the DNB’s administrative order, saying it was “based on the time it took for Coinbase to obtain our registration in the Netherlands and includes no criticism of our actual services,” adding that the company “should not be penalized for playing by the rules and engaging in this process.”
Coinbase is therefore carefully evaluating the objections and appeal process. Nonetheless, the exchange is committed to continuing to provide safe, trusted services to all its new and existing Dutch customers.
The Dutch central bank imposed a similar fine on the Binance crypto exchange in July 2022 for failing to obtain the necessary license to offer services in the Netherlands.