Coinbase has offered cryptocurrency services in the Netherlands without registering for it with De Nederlandsche Bank. The company was therefore fined more than 3.3 million euros. Binance was fined similarly last year for the same reason.
Companies offering cryptocurrency services in the Netherlands are required to register with De Nederlandsche Bank under the Money Laundering and Terrorist Financing (Prevention) Act. Coinbase failed to do this in time and will therefore be fined 3,325,000 euros.
The violation includes a basic amount of two million euros, but De Nederlandsche Bank has increased this amount because Coinbase is one of the largest providers of cryptocurrency services worldwide. “In addition, Coinbase in the Netherlands has a significant number of customers who purchase cryptocurrency services.” In addition, by not registering on time, the stock exchange has not paid any levies to the regulator for many years and has had to incur ‘no other costs’ due to the ongoing supervision. As a result, the service could enjoy a competitive advantage, according to the central bank.
The Dutch Bank further increased the fine because the stock exchange did not register for years, while this obligation was introduced in May 2020. “However, DNB has moderated the fine by five percent, because DNB has taken into account in a positive sense that Coinbase has always had the intention to obtain a registration with DNB.” The stock exchange received this registration on September 22, 2022.
With a registration, companies are obliged, among other things, to report unusual transactions to financial investigation authorities. Companies that do not comply with the law can be fined up to four million euros. In July 2022, Binance also received a fine of 3.3 million euros because it had not registered in time. Binance had objected to this fine, but later withdrew it. Coinbase has until March 2 to appeal.
