- Crypto.com has been issued a fine for registration law violation in the Netherlands.
- The exchange is seeking to appeal the regulatory ruling.
- Crypto.com secured the Dutch operational license in the previous year.
Despite the surge in the popularity of the crypto industry over the past years, the global regulatory landscape remains uneven. Financial watchdogs across the globe adopt varying standards in keeping local crypto firms compliant with local regulations, sometimes involving penalties and sanctions.
Against this backdrop, crypto exchange Crypto.com has come under scrutiny in the Netherlands.
DNB Fines Crypto.com
According to a March 13 release by the central bank of the Netherlands, De Nederlandsche Bank (DNB), Crypto.com has been fined a staggering 2.85 million euros, or approximately $3.1 million.
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The fine, issued on October 2, 2023, was imposed in consequence of the exchange’s provision of crypto services in the Netherlands without the mandatory registration with DNB, violating the Dutch Anti-Money Laundering and Anti-Terrorist Financing.
While Crypto.com is currently authorized to operate in the Netherlands following its acquisition of a full operational license from the DNB in July 2023, the financial regulator asserted that the exchange’s operations from 21 May 2020 until 8 November 2022 were illegal and in violation of regulations.
The exchange’s period of non-compliance is punishable by a category three fine, the base amount of which is €2 million. However, the regulator added that Crypto.com’s additional million is due to its “very severe” non-compliance.
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Crypto.com has highlighted ongoing efforts to appeal the regulator’s decision. The exchange is not the first to face financial liabilities with the Dutch regulatory authority.
DNB vs. Crypto Firms
In July 2022, De Nederlandsche Bank (DNB fined Binance $3.4 million for operating illegally in the country.
The $3.4 million fine was among the most stringent of the central bank’s levels of enforcement, attributed to the “gravity and degree of culpability of the non-compliance.” DNB states, “Binance offered crypto services in the Netherlands without a legally required registration with DNB. Later in June, Binance bid bye to the Dutch market after failed registration efforts.
Most recently, the DNB imposed a fine on Coinbase in January 2023, alleging that it serviced numerous customers in the Netherlands without obtaining the necessary registration. The regulatory body demanded Coinbase to pay a total $3.6M
Kraken was also previously flagged by the regulator as non-compliant. However, no enforcement actions were initiated against the exchange.
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