Coinbase Gets Dutch Fine for Operating Without Registration

The Dutch Central Bank fined crypto exchange Coinbase for providing digital-asset services in the country prior to its local registration in September.

(Bloomberg) — The Dutch Central Bank fined crypto exchange Coinbase for providing digital-asset services in the country prior to its local registration in September.

The central bank said Thursday it’s imposing an administrative fine of €3.33 million ($3.63 million) on Coinbase Europe Ltd. for operating in the country without registering with the monetary authority. Coinbase obtained its registration in the Netherlands on Sept. 22.

Companies seeking to provide crypto services in the Netherlands are required to register with the central bank under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act. The central bank said “the base amount of the fine was increased due to the severity and degree of culpability of the non-compliance.”

The central bank said Coinbase, which “has a significant number of customers in the Netherlands,” was in non-compliance with its rules from November 2020 to August 2022.

“This meant that Coinbase was unable to report unusual transactions to the Financial Intelligence Unit-Netherlands during the period of non-compliance,” the central bank said. “A large number of unusual transactions may have gone unnoticed by the investigative authorities during this period.”

A Coinbase spokesperson said the company disagrees with the fine and while it respects the central bank’s authority to enforce regulations, it is “carefully considering the objections and appeals process.”

“Coinbase is committed to compliance in all jurisdictions in which it operates and will continue to provide safe, trusted services to new and existing Dutch customers,” MaryKate Collins, a Coinbase spokesperson, told Bloomberg via email. The company “should not be penalized for playing by the rules and engaging in this process,” she said.

 

Coinbase has until March 2 to object to the fine.

(Updates with Coinbase comments in the sixth and seventh paragraphs)

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