The cryptocurrency exchange faced penalties for operating without proper registration in the Netherlands.
In a recent development, the Dutch central bank, De Nederlandsche Bank (DNB), has imposed a substantial fine of €2.85 million ($3.1 million) on the well-known cryptocurrency exchange, Crypto.com. The fine, which was originally issued in October 2023 but only recently made public, pertains to the exchange's failure to register with the regulator before offering its services in the Netherlands.
According to the DNB, companies providing crypto services in the country are required to register under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act. Crypto.com, registered as Foris DAX MT Limited, operated without the necessary registration from May 21, 2020, to at least November 8, 2022. The base amount for such a violation is typically €2 million, but the DNB increased the fine due to the severity and degree of culpability of the non-compliance.
The central bank took into account several factors when deciding to augment the penalty, including the significant number of Dutch customers utilizing Crypto.com's services and the competitive advantage the exchange gained by not paying supervisory fees or incurring other compliance costs. Furthermore, the DNB noted that the non-compliance persisted over an extended period, which contributed to the increased fine.
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