The Central Bank of the Netherlands (DNB) is hitting prominent crypto exchange platform Coinbase with a multimillion-dollar fine for failing to comply with its guidelines. In a new press release, the bank says it’s levying a fine against the European branch of Coinbase for offering crypto-related products without first registering with the proper authorities. “On […]
The post Coinbase Slapped With a $3,620,000 Fine by Dutch Central Bank Over Non-Compliance appeared first on The Daily Hodl.
U.S.-based crypto exchange Coinbase is fined by the Dutch Central Bank for 3.3 million euros ($3.6 million) for the lack of registration.
The Dutch Central Bank (DCB) fined cryptocurrency exchange Coinbase for 3.3 million euros, or around $3.6 million, due to noncompliance with local regulations for financial service providers, according to a Reuters report on Jan 26.
The exchange reportedly failed to obtain the necessary registration to offer services in the Netherlands prior to beginning operations in the country. The DCB said it took into consideration the size of Coinbase as a company, and the fact that it has a “significant number of customers in the Netherlands.”
Coinbase was out of compliance during the time period between November 2020 and August 2022.
This story is still developing and will be updated when more information is available.
Crypto exchange Coinbase has received approval to offer its full suite of retail and institutional crypto products and services in the Netherlands. “We have taken strides to work collaboratively with government, policymakers, and regulators to shape the future in a responsible way,” Coinbase said. Dutch Regulator Approves Coinbase The Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN) […]
The Dutch central bank has fined cryptocurrency exchange Binance 3.325 million euros for offering crypto services in the Netherlands without the legally required registration. Binance has appealed against the fine and has now submitted an application to register with the central bank. Binance Fined by Dutch Regulator The Dutch central bank, De Nederlandsche Bank (DNB), […]
Coinbase has announced that the company plans to introduce a number of changes for customers in the Netherlands in order to comply with the 1977 Sanctions Act, a law that recently applied know-your-customer (KYC) guidelines to non-custodial wallets. If the person living in the Netherlands wants to send crypto to a third-party wallet via Coinbase, […]
The cryptocurrency industry in the Netherlands has won a small but significant battle. The country’s central bank has canceled some excessive verification procedures that it imposed on crypto service providers last fall. The move comes after a local exchange took the matter to court. DNB Takes a Step Back on Unlawful KYC Requirements De Nederlandsche […]
Stringent KYC requirements notwithstanding, the Dutch central bank still does not know how many crypto investors are in the Netherlands.
De Nederlandsche Bank NV — the Dutch central bank — has registered about 20 crypto exchanges in the country but is no closer to determining the number of cryptocurrency investors in the country.
According to Dutch online news service Nu.nl, regulators like DNB and the Autoriteit Financiële Markten, or AFM, as well as the investor group Vereniging Van Effectenbezitters, or VEB are unsure of the crypto ownership demographic in the Netherlands.
Since late 2020, Dutch authorities began enforcing the European Union’s Fifth Anti-Money Laundering Directive with significant implications for crypto businesses.
Under the AMLD-5 paradigm, the De Nederlandsche Bank has mandated strict compliance with Know Your Customer and AML protocols for Dutch crypto exchanges, a move that has been met with severe criticism from industry participants given the invasive nature of the policy.
In January, Bitstamp imposed KYC for Dutch traders withdrawing crypto to external wallets, demanding photographic proof-of-wallet ownership before effecting such payments. As previously reported by Cointelegraph, Netherlands-based Bitcoin (BTC) exchange platform Bitonic dragged the DNB to court over the wallet verification rule.
However, strict KYC requirements aside, the DNB continues to maintain a neutral position concerning crypto trading, with a central bank spokesperson telling Nu.nl:
“We are not advising for or against investment but we do have an opinion. A crypto does not represent anything, it’s not a share in anything. It’s not a loan which is returned with interest.”
The DNB spokesperson also clarified the extent of the central bank’s oversight to only AML and the use of crypto for other criminal activities.
As for the AFM, the financial monitoring agency is of the opinion that crypto trading is based purely on hype and speculation. Thus, the AFM says it will continue to issue warnings to retail traders about the risk of investing in cryptocurrencies, similar to those issued by regulators across the globe.
