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.”
Coinbase didn’t immediately respond to an email seeking comment. The company has until March 2 to object to the fine.
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