Crypto News– Crypto.com has been fined €2.85 million ($3.1 million) by the Netherlands Central Bank for operating without registration within the European country for a duration of two years. The penalty is directed specifically at Forix DAX Mt, the Dutch trading entity of Crypto.com.
Dutch Central Bank Levies 2.85 Million Euro Fine on Crypto.com for Regulatory Violations
As per a statement released on March 13, the Apex Bank levied this fine on the crypto trading platform back in October 2023. However, during that same period, the exchange lodged an objection against the fine.
What Led to Crypto.com’s Fine?
“Why Crypto.com Received a Fine:
In the Netherlands, crypto firms are required to register with De Nederlandsche Bank (DNB) under the Anti-money Laundering and Anti-Terrorist Financing Act to operate within the country.
Despite conducting operations within the country, Crypto.com failed to register with the authorities for an extended period.
DNB emphasized the severity of this noncompliance, resulting in a fine exceeding the base amount of €2 million. The regulator pointed out Crypto.com’s sizable customer base in the Netherlands and alleged that the platform gained an unfair competitive advantage by evading regulatory fees for two years.
DNB stated, ‘A further important reason for the increased fine is that the non-compliance persisted over a prolonged period: from 21 May 2020 until at least 8 November 2022 (the end date of DNB’s examination). This is why DNB considers the non-compliance to be very severe.’
This incident is not the first instance of DNB penalizing a crypto-related platform for noncompliance with local regulations. Last year, the regulator fined major crypto platforms, Binance and Coinbase, over $3 million for allegedly operating in the country without proper registrations.
As a result, Binance opted to withdraw from the country due to its inability to secure licensing.”
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