Dutch central bank has charged US-based crypto exchange Coinbase 3.3 million euros ($3.6 million)as fines for the lack of registration and failure to follow local rules.
According to a Reuters article from January 26, the Dutch central bank, De Nederlandsche Bank (DNB), penalized cryptocurrency exchange Coinbase 3.3 million euros ($3.6 million) for failing to follow local rules for financial service providers.
Prior to starting operations in the Netherlands, the exchange apparently failed to get the required registration to provide services there. Coinbase’s size as a business and the fact that it has a “substantial number of clients in the Netherlands,” according to the DNB, were taken into account.
Authorities said that Coinbase violated regulations from November 2020 to August 2022.
The DNB went after the cryptocurrency exchange KuCoin in December 2022, claiming that it, too, was operating without a license and providing services in violation of the law.
Similar accusations were made against Binance Holdings Limited in 2021, and as a result, the exchange was targeted and fined more than 3 million euros.
Since the start of the year, Coinbase has made news for a variety of factors connected to its commercial activities.
On January 10, it said that operational reorganization will result in a 20% reduction in staff. On this same day, the brother of the former manager of the cryptocurrency exchange received a 10-month jail term for insider trading, marking the first recorded instance of its sort in the sector.
The following Monday, January 18, a week later, Coinbase made the announcement that it will cease operations in Japan due to the lingering impacts of the bear market trading collapse.
Despite fewer than ideal events from the exchange, it was claimed that Coinbase stock had increased by 69% from its all-time low at around the same time that it shut down operations in Japan.
Additionally, since the beginning of 2023, Cathie Wood’s ARK Investment has added $17.6 million in Coinbase shares.
