The Dutch Central Bank Penalized Coinbase for $3.6 Million

Key Points: The Dutch Central Bank (DNB), has accused Coinbase of failing pre-approval processes to provide services to local customers until September 22, 2022. Coinbase’s European Office was fined 325 million euros (approximately 3.6 million USD) for this “extremely grave” breach.
DNB stated that bitcoin exchanges have a competitive advantage because they don’t incur custody charges.
The DNB Central Bank deemed Coinbase’s Dutch unlicensed activity a “very serious offense”. The European office of Coinbase was penalized with a fine of 3,325 million euros (approximately 3.6 million USD) for the “extremely grave” breach. Coinbase filed to operate as a wallet service provider and exchange in September 2020. However, it withdrew its application a few months later. The explanation was that the firm failed to comply with strict anti-money laundering, terrorist financing requirements of the DNB. This applies to all crypto businesses since 2020. Coinbase was not licensed until November 2022. DNB, however, claimed that cryptocurrency exchanges have a competitive advantage since they don’t have to pay custodial fees. The DNB enforcement order states: “Coinbase was broken for approximately two year, during which time the number of Dutch customers also quadrupled. The severity of the incident is therefore quite severe. Coinbase, a global bitcoin service provider, should be aware of all applicable rules. The platform’s actions were heinous.” The Coinbase representative insisted. After reviewing the objections and complaint procedure for the Dutch bank’s accusations, the corporation refused to agree. “The Netherlands has granted a license to oper and has not made any comments on our service. Coinbase should not face any penalties for following the regulations. The base penalty of 2.18million USD has been significantly increased. This is because Coinbase is a major cryptocurrency exchange in the world and the largest in the Dutch market. Binance was also charged for the same offense last year. KuCoin received a warning by DNB Central Bank. In August 2022, Tornado Cash, the Dutch developer of the money-mixer platform Tornado Cash, was arrested. New York’s government (USA), fined Coinbase $50 million for failing to perform KYC procedures in January 2023. It also ordered KuCoin to spend $50 million to rebuild its entire identity verification business. Use. We encourage you to do your own research before investing.Join us to keep track of news: NewsTags: CoinbasecryptomarketThe Dutch Central Bank