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DNB imposes fine on Crypto.com for illegal operations in the Netherlands

TL;DR

  • DNB fined Crypto.com €2.85 million for operating illegally in the Netherlands.
  • Crypto.com violated Dutch law by offering crypto services without registration.
  • Despite the fine, Crypto.com obtained DNB registration in July 2023.

The De Nederlandsche Bank (DNB) has revealed that it imposed an administrative fine on centralized exchange Crypto.com for operating illegally in the Netherlands. The fine comes after Crypto.com, operated by Foris DAX MT Limited (DAX MT), allegedly provided crypto services without proper registration for over two years.

Violation of Dutch law

According to the DNB, Crypto.com violated the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft) by offering professional or business services to exchange virtual currencies without registration. This breach occurred between May 21, 2020, and at least November 8, 2022.

The DNB categorized Crypto.com’s non-compliance with the Wwft as a Category 3 offense, which carries a base fine of €2 million ($2.17 million). However, considering the severity and extent of the violation, the fine was increased to €2.85 million ($3.1 million). This decision was influenced by Crypto.com’s significant presence in the Netherlands, which allowed it to gain a competitive advantage over registered competitors by avoiding regulatory fees and compliance costs.

This isn’t the first time the DNB has taken action against unregistered crypto exchanges. Previously, both Coinbase and Binance faced fines exceeding €3 million for similar violations. While Coinbase obtained regulatory approval in September 2022, Binance ceased its operations in the Netherlands after failing to secure registration.

Compliance and authorization

Despite facing an administrative fine, Crypto.com obtained DNB registration in July 2023, allowing it to operate legally in the Netherlands. This move aligns with the DNB’s mandate to regulate crypto service providers and ensure compliance with national laws.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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