Dutch central bank fines cryptocurrency exchange Coinbase 3.3 million euros

THE Dutch central bank (DNB) has fined US cryptocurrency exchange Coinbase 3.3 million euros (S$4.7 million) for failing to obtain the correct registration in the Netherlands before offering services.

The fine mirrors one handed to Coinbase rival Binance in July.

Coinbase said it disagreed with the DNB’s decision, which it said “includes no criticism of our actual services” and was considering an appeal.

Cryptocurrency companies operating in the Netherlands have been obliged to register as money transmitters under the country’s anti-money laundering rules since May 2020.

The DNB said Coinbase was out of compliance between November 2020 and “at least” August 2022, before it successfully registered on Sep 22, 2022.

During that period “a large number of unusual transactions may have gone unnoticed by the investigative authorities”, it said.

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The DNB said it had taken into consideration that Coinbase was one of the largest cryptocurrency companies and had a “significant number of customers in the Netherlands”.

Coinbase has until March 2 to appeal. REUTERS