• Coinbase, a US-based cryptocurrency exchange, was fined 3.3 million euros ($3.6 million) by the Dutch central bank for not registering as required.
• The Dutch central bank took into consideration the size of Coinbase and the fact that it has a “significant number of customers in the Netherlands” when issuing the fine.
• In 2021, Coinbase was targeted with similar allegations, for which the exchange paid more than 3 million euros in fines due to the violations.

Coinbase, the United States-based cryptocurrency exchange, was recently hit with a 3.3 million euro ($3.6 million) fine from the Dutch central bank for failing to register as required. This news was reported on January 26 by Reuters, and it highlights the importance of following the rules when operating in the financial services sector.

The Dutch central bank, known as De Nederlandsche Bank (DNB), took into consideration the size of Coinbase and the fact that it had a “significant number of customers in the Netherlands” when issuing the fine. Coinbase had apparently been non-compliant at the time period between November 2020 and August 2022, which is why the central bank finally decided to issue the fine.

This is not the first time that Coinbase has been targeted with similar allegations. In December 2022, the Dutch central bank also targeted the KuCoin cryptocurrency exchange, claiming that it was operating without a license and therefore offering services illegally. Then, in 2021, the bank went after Binance Holdings Limited with similar allegations, resulting in the exchange paying more than 3 million euros in fines due to the violations.

The fine that Coinbase received is an important reminder for other cryptocurrency exchanges and other financial services providers to ensure that they are following all of the necessary regulations. Otherwise, they could be facing stiff penalties just like Coinbase did. It is also important to note that this is not the only instance of such a fine in the cryptocurrency sector, as other exchanges have received similar penalties for not following the laws.

This news is one of the many reminders that the cryptocurrency industry is still in its infancy and that there are still many regulations that need to be followed in order to ensure a safe and secure environment for all participants. With the right regulations in place, the industry can continue to grow and thrive, and Coinbase’s fine is an important message that companies should take seriously.