• Coinbase has been fined $3.6 million by the Dutch Central Bank for not registering with the DNB and violating the domestic regulations.
• This violation occurred between November 2020 and August 2022.
• Coinbase has the option to appeal the fine until March 2nd.
Coinbase Global Inc, one of the world’s largest cryptocurrency exchanges, was recently hit with a hefty fine of $3.6 million by the Dutch Central Bank. According to the financial watchdog, the crypto exchange had been in violation of its domestic regulations for nearly two years, between November 2020 and August 2022.
The Dutch Central Bank stated that Coinbase had failed to register with the DNB (De Nederlandsche Bank) prior to launching its services in the Netherlands, thus giving the firm an unfair competitive advantage over other businesses. It was also revealed that the Financial Intelligence Unit (FIU) had potentially missed out on suspicious transactions due to Coinbase’s non-compliance with regulations.
In order to comply with its domestic regulations, businesses are required to register with the DNB before launching any crypto-related services in the Netherlands. It is believed that Coinbase did not go through such a registration process and hence was in violation of the regulations.
The crypto exchange has been given until March 2nd to appeal against the fine. This is not the first time Coinbase has been fined; last year, the regulator had also imposed a $3.35 million fine on its peer Binance. Earlier in January, Coinbase had also settled with the NYDFS (New York Department of Financial Services) for a whopping $100 million.
The fine imposed by the Dutch Central Bank on Coinbase is a reminder for all businesses to stay compliant with the regulations of their respective countries. It also highlights the importance of being transparent and following the set guidelines to avoid any legal repercussions.