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Dutch Central Bank Fines Coinbase

In the Netherlands, the cryptocurrency exchange platform Coinbase was fined.

Dutch Central Bank Fines Coinbase

Source: Pixabay.com

The amount of this fine amounted to 3.3 million euros. The reason for applying the financial impact measure was the provision of services in the field of cryptocurrencies without registration with the central bank of the Netherlands.

The Dutch legislative framework contains a provision for mandatory registration of cryptocurrency companies as money senders. This requirement is aimed at combating money laundering. The norm came into force in May 2020. Coinbase received the registration required to operate legally in September 2022.

The basic penalty for violating the rule on mandatory registration as a sender of money for crypto firms is 2 million euros. The maximum amount of the penalty is 4 million euros. The penalty against Coinbase was greater than the base value for two reasons. The broad scale of the platform’s activities was taken into account. Also, as an influential factor when deciding on the application of the fine, the fact that Coinbase was in a preferential position compared to its competitors, but did not pay supervisory fees, was taken into account.

The crypto platform commented on the decision of the central bank of the Netherlands with a statement of intent to appeal this ruling. Representatives of Coinbase noted that the decision on the fine does not contain criticism of real services. The content of this comment makes it clear that the ruling of the regulator, according to the management of the crypto platform, does not take into account the specifics of the industry and is not fair in assessing the company’s activities.

Coinbase can challenge the decision on the fine until March 2, 2023.

Last July, the central bank of the Netherlands fined Coinbase’s competitor Binance the same amount for a similar violation.

As we have reported earlier, Coinbase Insider Trader Gets Prison Sentence.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.