- Coinbase failed to register before providing crypto services to Dutch clients
- The exchange gained an edge over the competition by not paying supervisory charges
The Central Bank of the Netherlands levied a fine of 3,325,000 euros on crypto exchange Coinbase for failing to register before providing crypto services to Dutch clients, CoinDesk reported. A spokesperson for Coinbase stated they intended to appeal the decision.
Breach of AML laws
The fine is roughly equivalent to $3.6 million. Under Dutch law, crypto companies have to register in accordance with terrorist financing and anti-money laundering laws. A spokesman of the bank said:
The base amount [of the fine] has been increased due to the severity and degree of culpability of the non-compliance.
Exacerbating factors
The spokesman added that the Dutch central bank had considered additional factors in determining the amount of the fine. These include the edge over the competition gained by not paying supervisory charges and the number of Coinbase clients in the Netherlands.
The biggest crypto exchange in the US may file an appeal against the administrative fine by March 2. A spokesperson told CoinDesk the company disagreed with the judgment and was “carefully considering the objections and appeals process.” They said:
The order is based on the time it took for Coinbase to obtain our registration in the Netherlands and includes no criticism of our actual services. Coinbase is committed to compliance in all jurisdictions in which it operates and will continue to provide safe, trusted services to new and existing Dutch customers. We should not be penalized for playing by the rules and engaging in this process.
