The largest U.S. cryptocurrency exchange, Coinbase (NASDAQ: COIN) has been fined EUR3.3 million (around $3.6 million) by the Dutch Central Bank (DNB). This was for failing to obtain the correct registration in the Netherlands before offering services.
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Dutch Central Bank Comments
De Nederlandsche Bank (DNB) is the Dutch Central Bank and has fined Coinbase (NASDAQ: COIN) EUR3.3 million (around $3.6 million). The DNB highlighted that cryptocurrency companies operating in the Netherlands have since May 2020, been obligated to register as money transmitters under Dutch anti-money laundering rules. The authorities indicated that between November 2020 and August 2022, Coinbase was non-compliant. The DNB has considered the size of Coinbase and that it has a “significant number of customers in the Netherlands.”
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Other Fines from the DNB and Coinbase Reaction
The fine echoes a similar fine from the DNB imposed on rival crypto exchange Binance in July 2022 and, in December of last year a warning to investors using KuCoin, stating that it was not licensed and “illegally offering services”.
In reaction to the fine, Coinbase said it disagreed with the DNB’s decision, which it said “includes no criticism of our actual services,” and was considering an appeal.
Who Are Coinbase?
Coinbase are one of the oldest digital currency exchanges, founded in 2012 by Fred Ehrsam and Brian Armstrong. According to their website, the cryptocurrency exchange now serves over 108 million verified users in over 100 countries and has traded over $150 billion in digital assets quarterly, has over $100 billion on their platform and has more than 4700 employees.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.