Coinbase fined €3.3M by the Dutch central bank

In a rare twist of events, popular US-based cryptocurrency exchange Coinbase has been fined $3.6 million (€3.3 million) by the Dutch central bank for non-compliance. The fine comes days after the exchange announced 20% layoffstermination of operations in Japan due to negative market effects.

The Dutch central bank, De Nederlandsche Bank (DNB), stated that the crypto exchange was not compliant with local regulations for financial service providers in the Netherlands.

Fined for number of customers

According to De Nederlandsche Bank, COINBASE failed to acquire the necessary registration to offer crypto services in the Netherlands before it started operating in the country. The bank said that it considered the size of the exchange as a company and the “significant number of clients” it has in the Netherlands in coming to the decision.

Most specifically, the authorities claimed that the crypto exchange was not compliant during the time period between November 2020 and August 2022.

It is not clear whether Coinbase will go ahead to apply for registration immediately or it will take time going by the claims of having a huge following in the country already.