Bitcoin exchange Coinbase is fined millions by DNB

De Nederlandsche Bank (DNB) has imposed a fine of millions on the major American crypto exchange Coinbase. The exchange would have been operational in our country for a long time without the correct permits. DNB announces this in a announcement.

Bitcoin exchange Coinbase is fined 3.3 million euros

Companies that want to offer crypto services in the Netherlands must register with DNB. This registration obligation is part of the Money Laundering and Terrorist Financing Prevention Act (Wwft). Coinbase received the registration from DNB on September 22, but before that it was active in the Netherlands without the correct papers.

To be precise, Coinbase was active in the Netherlands between November 15, 2020 and August 24, 2022 without registration. For this, the Dutch central bank can impose a fine of between 0 and a maximum of 4 million euros. 2 million euros is the basic amount for such a fine. The fact that Coinbase has received an increased fine has to do with “increased seriousness and culpability,” according to DNB.

“DNB has included in the increase of the fine that Coinbase is one of the largest providers of crypto services worldwide. In addition, Coinbase in the Netherlands has a significant number of customers who purchase crypto services.”

Crypto exchange enjoyed competitive advantage

Besides the fact that Coinbase is a true crypto giant and has many customers in the Netherlands, the exchange would also have had a competitive advantage due to the lack of registration. This is because the exchange has not paid any levies to DNB. In addition, Dutch crypto companies, such as Bitvavo, incur costs because they have to monitor the transactions on their platforms.

Coinbase is not the only international player to receive a fine from DNB. Last year, Binance was fined the same amount. It then concerned an almost identical situation in which “increased seriousness and culpability” also applied then.

Both Binance and Coinbase now have the correct registration. on this website lists all companies that are registered in the Netherlands as providers of crypto services.

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