The Dutch central bank (DNB) has fined cryptocurrency exchange Coinbase €3.3 million for failing to obtain a competent license before it started operating in the country.
As reported by Reuters, US-based Coinbase – which is one of the world’s largest crypto exchanges – noted that it disagrees with DNB’s decision, arguing that it “does not contain criticism of the actual services” provided by the company, adding that it is considering an appeal of the bank’s decision. Coinbase has until March 2 to request an appeal.
It is noted that cryptocurrency companies in the Netherlands are required to operate under the anti-money laundering law passed by the country’s government in May 2022.
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DNB claims that Coinbase was operating outside the regulatory framework from November 2020 and “at least” until August 2022 before complying with the country’s legislation on 22 September 2022.
During this period, the central bank argues, “a large number of unusual transactions may have escaped the attention of regulators”. At the same time, DNB says it took into account the fact that Coinbase is one of the largest cryptocurrency companies and that it “has a significant number of customers in the Netherlands”.
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