Crypto.com, a prominent crypto trading platform, has recently found itself in hot water with the Netherlands Central Bank. The company was fined a staggering €2.85 million ($3.1 million) for operating within the country without proper registration for a period of two years. This violation stems from Dutch regulations that require crypto firms to register with the De Nederlandsche Bank (DNB) under the Anti-money Laundering and Anti-Terrorist Financing Act.
The extent of Crypto.com’s noncompliance was deemed severe by the regulator, prompting a fine that exceeded the base amount of €2 million. DNB pointed out that the platform had a substantial customer base in the Netherlands and had gained an unfair competitive advantage by evading regulatory fees for an extended period. The noncompliance persisted from May 21, 2020, until at least November 8, 2022, leading the DNB to classify it as a very severe violation.
Previous Enforcement Actions
This is not the first time the DNB has penalized a crypto-related platform for failing to comply with local regulations. In the past year, major platforms such as Binance and Coinbase were fined over $3 million for operating in the country without proper registrations. As a result, Binance chose to exit the Dutch market after failing to obtain a license.
Despite the hefty fine imposed by the Netherlands Central Bank, Crypto.com has taken steps to rectify its noncompliance. The company lodged an appeal against the fine in October 2023 and registered with the DNB in July of the same year. By doing so, Crypto.com became one of the 40 licensed crypto entities in the country, demonstrating its commitment to meeting regulatory requirements.
The case of Crypto.com serves as a cautionary tale for crypto firms operating in various jurisdictions. Noncompliance with local regulations can result in significant financial penalties and reputational damage. It is imperative for crypto platforms to adhere to regulatory requirements and maintain transparency in their operations to avoid facing similar consequences in the future.
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