Crypto.com, a leading cryptocurrency trading platform, has recently been hit with a hefty fine of €2.85 million ($3.1 million) by the Netherlands Central Bank for operating within the country without proper registration for a significant period of time. The Dutch regulations mandate that crypto firms must register with the De Nederlandsche Bank (DNB) under the Anti-money Laundering and Anti-Terrorist Financing Act to conduct operations within the country. Despite being active in the Netherlands, Crypto.com failed to comply with this requirement, leading to the imposition of the fine.
The DNB emphasized that the extent of Crypto.com’s noncompliance was severe, citing the prolonged period during which the platform operated without registration. This violation persisted from May 21, 2020, until at least November 8, 2022, as per the DNB’s investigation. The failure to register not only violated local regulations but also provided Crypto.com with an unfair advantage in the market by avoiding regulatory fees for an extended period. As a result, the DNB deemed the noncompliance to be very severe, justifying the substantial fine imposed on the platform.
This is not the first instance of the DNB penalizing a cryptocurrency-related platform for noncompliance with local regulations. In the previous year, major players in the crypto industry, such as Binance and Coinbase, were fined over $3 million each for allegedly operating in the Netherlands without the necessary registrations. Following the penalty, Binance opted to exit the country due to the regulatory challenges it faced. The pattern of penalizing noncompliant crypto platforms demonstrates the DNB’s commitment to enforcing regulatory standards within the industry.
Despite the fine imposed on Crypto.com, the platform has taken steps to address the issue. In October 2023, Crypto.com lodged an appeal against the fine, seeking to challenge the penalty through legal means. Additionally, the platform completed its registration with the DNB in July, joining the ranks of 40 licensed crypto entities in the Netherlands. By engaging with the regulatory authorities and complying with the registration requirements, Crypto.com aims to rectify its past noncompliance and operate within the boundaries of the law.
The fine levied by the Netherlands Central Bank on Crypto.com underscores the importance of regulatory compliance in the cryptocurrency industry. Noncompliance with registration requirements not only exposes platforms to financial penalties but also undermines the integrity of the market by providing unfair advantages to noncompliant entities. Moving forward, Crypto.com’s legal response and regulatory registration signify a step towards rectifying the past noncompliance and operating responsibly within the Dutch market.
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