The Central Bank of the Netherlands (DNB) is hitting prominent crypto exchange platform Coinbase with a multimillion-dollar fine for failing to comply with its guidelines.
In a new press release, the bank says it’s levying a fine against the European branch of Coinbase for offering crypto-related products without first registering with the proper authorities.
“On 18 January 2023, De Nederlandsche Bank imposed an administrative fine of €3,325,000 on Coinbase Europe Limited. The fine was imposed because Coinbase provided crypto services in the Netherlands in the past without registration with DNB, which is in non-compliance with the law.
Companies wishing to provide crypto services in the Netherlands are required to register with DNB under the Dutch Anti-Money Laundering and Anti-Terrorist Financing.”
According to DNB, Coinbase is getting slapped with a grade 3 fine, which has a baseline of €2 million, valued at $2,176,900 at time of writing. However, the bank says its taking into account Coinbase’s size and global influence, as well as the number of customers it illegally served in the Netherlands, to bump up the fine to €3,325,000, valued at $3,619,096 at time of writing.
The bank goes on to say that due to Coinbase’s actions, many illegal crypto transactions may have gone unnoticed by authorities.
“Coinbase was unable to report unusual transactions to the Financial Intelligence Unit-Netherlands during the period of non-compliance and until 22 September 2022. As a result, a large number of unusual transactions may have gone unnoticed by the investigative authorities during this period.”
Coinbase has until March 2nd to file an objection to the fine.
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