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