The Dutch Central Bank (DNB) has imposed a €2.85 million fine on Crypto.com. The exchange is accused of operating in the Netherlands last year without registering as required by Dutch law. Dutch crypto.com users need not worry, however, as the platform continues to operate.
In the Netherlands, De Nederlandsche Bank (DNB) imposes heavy fine on Crypto.com exchange
Crypto exchanges will have to comply with the laws to take full advantage of the ongoing bullrun. In the Netherlands, the exchange Crypto.com has paid the price. In a press release published on March 13, 2024, the Dutch central bank announced it had imposed a fine of 2.85 million euros on the exchange Crypto.com. The De Nederlandsche Bank (DNB) accuses Crypto.com of having provided crypto services in the Netherlands in the past without registration as required by law.
De Nederlandsche Bank (DNB) has imposed an administrative fine of €2,850,000 on Foris DAX MT Limited (DAX MT), also known by the trade name “Crypto.com”.
DNB
The fine was imposed on Crypto.com last October but announced this March 13, 2024. We don’t know why this decision is being made public now. What we do know, however, is that the fine imposed on Crypto.com is higher than expected under Dutch law. Indeed, the basic fine for non-registration in the Netherlands is 2 million euros. This high fine is linked to the fact that the Dutch Central Bank estimates that Crypto.com’s non-compliance is very serious.
Indeed, Crypto.com has a large number of users in the Netherlands, according to the De Nederlandsche Bank (DNB). In addition, Crypto.com benefited from an advantage over its competitors, as the exchange paid no monitoring or compliance fees. Finally, the non-compliance of Crypto.com has persisted over a fairly long period. According to DNB, Crypto.com operated without registration in the Netherlands from May 21, 2020 to November 8, 2022.
Crypto.com still legal in the Netherlands, CEX activity uninterrupted
CEX users (Centralized Exchange) Crypto.com in the Netherlands need not worry. The platform remains perfectly legal and authorized to offer its services in the country. As stated by an exchange official, the fine relates to services provided in the past.
The fine relates to a past incident that has been rectified and has no impact on our ongoing operations or services in the market… We have already responded to the concerns raised in a timely and transparent manner.
Crypto.com spokesperson
Crypto.com has indeed made efforts to comply with Dutch legislation. In July of this year, Crypto.com obtained registration as a provider of digital asset services in the Netherlands. At the same time, its competitor Binance had left the country after being fined 3.4 million euros.
For the time being, Crypto.com will continue to operate in the Netherlands despite the DNB fine. Crypto users will therefore still be able to use this exchange or the 40 other exchanges registered in the country the list of which is shared publicly.
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