Coinbase has been fined $3.5 million (about Rs 30 crore) in the Netherlands. The Dutch central bank has served crypto exchanges with legal notices for offering crypto services in the Netherlands without completing necessary procedures including registration. In May 2020, the Netherlands made it mandatory for crypto-related companies to register as official money transmitters. The country aims to prevent the misuse of cryptocurrencies for money laundering.
was fined coinbase The $2 million (roughly Rs. 16 crore) base amount by De Nederlandsche Bank (DNB) is a notch higher than what can be issued under the law. According to bitcoin.com report goodThe amount of the fine has been decided on the basis of “the seriousness of the non-compliance and the degree of culpability”.
The Dutch Central Bank has claimed that Coinbase operated in the country without registration for almost two years between November 2020 and August 2022.
During this period, the bank claims, Coinbase was not able to report suspicious transaction details to the authorities. Nefarious actors could exploit this window to facilitate illegal cross-border payments that go undetected.
crypto exchange Can appeal against the decision of DNB till March.
The report further states that the exchange said it disagrees with the decision and is considering an appeal.
Coinbase obtained its operational registration in the Netherlands last September.
In December, Coinbase Told It also reported a 66 per cent increase in requests received from law enforcement agencies throughout the year. Coinbase said at the time that these requests from the Netherlands had increased by 163 percent.
Analytics Firm Triple-A Estimate By 2021 there were over 520,000 crypto holders in the Netherlands.
Amid the growing number of crypto investors, the country is taking a stricter approach towards implementing the Anti-Money Laundering and Anti-Terrorist Financing Act.
coinbase rival binance also faced uniform fine condition In the Netherlands last year for the same reasons.