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The Dutch central bank imposed a fine on the base of crypto exchange money for the provision of services in the past without the necessary registration. The negotiating platform, which has until March to oppose the measure, is currently examining a remedy against the movement.
The Netherlands Monetary Authority imposes fines for unregistered exploitation.
De Nederlandsche Bank (DNB) has imposed an administrative fine of €3,325,000 (over $3.6 million) on COINBASE Europe Limited, on Jan. 18, 2023. One advertisement explained the penalty with the stock market offering crypto services in the Netherlands in a past period without registering with the central bank.
That, in the regulator's opinion, is a violation of Dutch rules as companies wishing to provide crypto services are required to register with the DNB under the country's AML/ATF Act.
The monetary authority further detailed that the base amount for this category of fines is €2 million while pointing out that the fine in case with Coinbase has been increased “due to the severity and degree of culpability of the non-compliance.”
In raising the fine, DNB recognized that Coinbase is one of the largest providers of crypto services in the world. Moreover, coinbase has a large number of clients in the Netherlands who use its cryptography services,' said the bank and noted that the stock market has not paid any monitoring fees.
The Netherlands Central Bank also pointed out that the basic parts operated without registration for an extended period, between mid-november, 2020 to end of August, 2022, Noting that the Board considers serious non-compliance.
However, the DNB also reduced the fine by 5% because it stated that the currency base had always had the intention of obtaining registration in the Netherlands, which it did on 22 September last. The crypto vendor registration requirement was introduced in May 2020.
The lack of registration meant that the global exchange was unable to report unusual transactions to the dutch financial intelligence unit during the said period and these transfers may have gone unnoticed by the investigative authorities, The bank was adamant.
Coinbase may oppose a fine until 2 March 2023. The stock market has been cited by reuters as being in disagreement with the dnb's decision, that he said "does not understand any criticism of our real services." the crypto company is now looking at a call.
In July 2022, the Bank of Nederlandsche imposed a similar measure against binance. The biggest crypto exchange in the world was also the same amount in euros to provide crypto services in the Netherlands without the required registration.
Do you think the Netherlands central bank will impose fines on other providers of crypto services? Please tell us in the comments below.
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