Coinbase exchange broke the law by offering cryptocurrency services without the proper registration, according to the central bank of the Country.
Crypto exchange for providing cryptocurrency services to customers in the nation without being registered, Coinbase has been fined 3,325,000 euros ($3.6 million) by the Dutch central bank.
Under Dutch law, cryptocurrency service providers must register in accordance with standards against money laundering and terrorist funding.
The Dutch central bank stated that it had also taken into account the size of Coinbase’s Dutch customer base and the competitive advantage it had gained by not paying supervisory fees.
“As a result of the severity and degree of culpability of the non-compliance, the base amount has also been raised,” the central bank said.
Coinbase, which has until March 2 to challenge the administrative fine, has said that it disagreed with the enforcement order and is “seriously evaluating the objections and appeals procedure.”
According to a Coinbase representative, the ruling “is based on the time it took for Coinbase to get our registration in the Netherlands and includes no criticism of our actual services. “Coinbase is dedicated to compliance in all jurisdictions in which it operates and will keep providing new and current Dutch clients safe, dependable services.“
The representative continued, “We shouldn’t be fined for adhering to the rules and participating in this process.