Coinbase receives approval from De Nederlandsche Bank

Coinbase, the popular cryptocurrency exchange from the United States, continues its expansion in Europe continue. The crypto exchange has now received official approval from the DNB.

Listing in the public DNB register

The approval by these regulatory bodies allows Coinbase to offer its retail and institutional crypto products in the Netherlands.

According to official DNB data, Coinbase is one of the major international exchanges approved by De Nederlandsche Bank to operate cryptocurrency services alongside smaller local crypto companies. Coinbase Europe Limited and Coinbase Custody International are mention in the public register of DNB as crypto service providers.

From now on, the Dutch regulator also automatically supervises Coinbase Europe and Coinbase Custody, in accordance with the Anti-Money Laundering (AML), the Anti-Terrorist Financing Act and the Sanctions Act.

No specific consumer financial protection

It is worth noting that Coinbase’s crypto services are not subject to prudential supervision by the DNB. Financial and operational risks related to crypto services are not monitored and “there is no specific consumer financial protection.” It is worth noting that Coinbase offers its own insurance for potentially lost funds.

The news comes shortly after DNB issued guidelines on its policy for screening sanctions for crypto transactions last September 16 published. In the Q&A document, DNB warned about various risks associated with cryptocurrencies, including anonymity.

Expansion of Coinbase

In June, Coinbase originally announced its expansion plans within Europe. However, this expansion comes amid the company that faces many problems. The crypto exchange posted huge losses for two consecutive quarters in 2022, with losses in the second quarter of $1.1 billion.

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That was the biggest loss since Coinbase listed its shares on the Nasdaq Stock Exchange in April 2021. To cut costs, Coinbase cut about 18% of their workforce in June.

In July, US authorities arrested a former Coinbase executive, who alleged that the executive was involved in insider crypto trading. 2 more lawsuits in the US also allege that Coinbase made deceptive claims about its business practices. Although the exchange is making major expansion steps, the problems surrounding the exchange have not completely disappeared.

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