Dutch Central Bank Fines Million Dollars on Giant Stock Exchange!

Dutch central bankthe leading crypto exchange to Coinbase imposed an administrative fine of approximately 3.3 million Euros. The reason behind the penalty is that the exchange has provided crypto services in the past without registration in the Netherlands.

Dutch Central Bank Fines Cryptocurrency Exchange Coinbase 3.3 Million Euros

The central bank has given Coinbase until March 2 to appeal the fine. Companies wishing to offer crypto services in the Netherlands are required to register with the DNB under the Dutch Anti-Money Laundering and Anti-Terrorism Financing Act.

Due to the high risk of money laundering and terrorist financing associated with crypto services, the central bank imposed registration requirements for cryptocurrency exchanges and other crypto services providers on May 21, 2020.

Specifically, this concerns the anonymity associated with crypto transactions.

Having a registration obligation mechanism in place allows DNB to more effectively monitor the risk of illicit financial flows.

According to the central bank, Coinbase’s failure to comply with guidelines can be punished with a category 3 fine.

The central bank explained in a statement that the basic amount in this penalty category is €2 million, with the minimum amount being €0 and the maximum amount being €4 million. “Due to the severity of the non-compliance and degree of culpability, the base amount has been increased,” the statement said.

While increasing the amount of fines, DNB also took into account the fact that Coinbase is one of the largest crypto service providers globally. Moreover, Coinbase has a significant number of customers in the Netherlands who use its crypto services.

In addition, “Coinbase enjoyed a competitive advantage as it did not pay any audit fees to DNB or incur other costs in connection with DNB’s regular audit activities.” it was said.

*Not investment advice.