Coinbase Fined $3.6 million for Failure to Register

Renowned crypto exchange Coinbase has been fined a hefty $3.6 million by the Dutch Central Bank for offering crypto-related services to traders in the Netherlands without registration. Dutch law dictates that providers of crypto services must be registered with norms encapsulating anti-money laundering and terrorist financing.

According to the Dutch central bank, the base amount of the fine “has been increased due to the severity and degree of culpability of the non-compliance,” but Coinbase disagrees with such enforcement order, claiming that the exchange has always been “committed to compliance in all jurisdictions in which it operates and will continue to provide safe, trusted services to new and existing Dutch customers.”

Coinbase believes that it should not be penalized for “playing by the rules”, and is carefully considering the objections and appeals process to counter-act the decision made by the central bank.

Sources:

https://www.coindesk.com/policy/2023/01/26/coinbase-fined-36m-by-dutch-regulator-for-failure-to-register/

https://www.reuters.com/business/finance/dutch-central-bank-fines-cryptocurrency-exchange-coinbase-33-mln-euros-2023-01-26/