- Coinbase fined $3.6 million by Dutch central bank for operating without registration
- Fine is a result of non-compliance with AML and terrorist financing regulations
- Coinbase has until March 2 to appeal the fine.
The Dutch central bank, De Nederlandsche Bank (DNB), has imposed a fine of 3,325,000 euros ($3.6 million) on crypto exchange Coinbase for offering crypto services to customers in the Netherlands without proper registration. This fine is a result of Coinbase failing to comply with the anti-money laundering and terrorist financing regulations set forth by Dutch law, which requires crypto providers to register in order to operate within the country.
According to the DNB, the base amount of the fine has been increased due to the severity and degree of Coinbase's non-compliance. The DNB also took into account the scale of Coinbase's Dutch customer base and the competitive advantage the company had gained by not paying supervisory fees as reasons for the fine.
Coinbase, which has until March 2 to object to the administrative fine, has stated that they disagree with the enforcement order and are "carefully considering the objections and appeals process." A spokesperson for Coinbase stated that the order "is based on the time it took for Coinbase to obtain our registration in the Netherlands and includes no criticism of our actual services." The company emphasized that they are committed to compliance in all jurisdictions in which they operate and will continue to provide safe, trusted services to new and existing Dutch customers.
It is worth noting that this fine should not be seen as a reflection of the company's services or practices, as the DNB has not made any statements regarding any issues with Coinbase's actual services or operations. The fine is simply a result of the company not being properly registered in the Netherlands.
Coinbase as a company and Crypto exchanges in general have been under scrutiny of regulators globally to ensure they are not facilitating any illicit activities by providing services to unregistered or suspicious entities. In this case, the company has been fined for not adhering to the specific regulations set forth by the Dutch central bank and must now decide whether or not to appeal the fine.