• Coinbase, a United States-based crypto exchange, was fined 3.3 million euros ($3.6 million) by the Dutch central bank for failing to register with the local financial service providers.
• The Dutch central bank, De Nederlandsche Bank (DNB), took into account the size of Coinbase and the fact that it has a “significant number of customers in the Netherlands” when imposing the fine.
• In 2021, the DNB also targeted Binance Holdings Limited with similar allegations, for which the exchange paid more than 3 million euros in fines due to the violations.

United States-based crypto exchange Coinbase has recently been fined 3.3 million euros ($3.6 million) by the Dutch central bank, De Nederlandsche Bank (DNB), for failing to register with the local financial service providers. The DNB took into account the size of Coinbase and the fact that it has a “significant number of customers in the Netherlands” when imposing the fine.

The DNB revealed that the exchange had been non-compliant between the months of November 2020 and August 2022. This is not the first time that the Dutch central bank has taken action against crypto exchanges operating without a license. Earlier in December 2022, the DNB had targeted KuCoin with allegations of similar nature, while in 2021 Binance Holdings Limited also faced similar accusations and was required to pay more than 3 million euros in fines due to the violations.

The fine imposed on Coinbase serves as a warning to other exchanges operating in the Netherlands without the necessary registration. It is an indication that the Dutch government is serious about enforcing the regulations and ensuring that the market is secure and compliant with the necessary laws.

It is also a reminder that any crypto exchange, regardless of its size or the number of customers it serves, is expected to abide by the laws of the country it is operating in. Failure to do so could lead to hefty fines and further legal action. In the case of Coinbase, the 3.3 million euros fine is just the beginning, and the company may be required to pay additional fines if it does not comply with the regulations.

Crypto exchanges operating in the Netherlands, or any other country for that matter, should take note of the action taken against Coinbase and make sure that they are compliant with all the necessary regulations to avoid facing similar consequences.