2024-06-21
Business Global News

Breaking: Coinbase fined $3.6M in the Netherlands

United States-based crypto exchange Coinbase is fined 3.3 million euros ($3.6 million) by the Dutch central bank for the lack of registration.

De Nederlandsche Bank (DNB),the Dutch central Bank, fined cryptocurrency exchange Coinbase 3.3 million euros ($3.6 million), due to non-compliance with local regulations for financial service providers, according to a Reuters report on Jan 26. 

The exchange reportedly failed to obtain the necessary registration to offer services in the Netherlands prior to beginning operations in the country. The DNB said it took into consideration the size of Coinbase as a company and the fact that it has a “significant number of customers in the Netherlands.”

The authorities claimed Coinbase was non-compliant during the time period between November 2020 and August 2022.

In December 2022, the DNB targeted the cryptocurrency exchange KuCoin saying that it too was operating without a license and therefore offering services illegally. 

In 2021 it targeted Binance Holdings Limited with similar allegations, for which the exchange paid more than 3 million euros in fines due to the violations.

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Related: Coinbase CEO urges Bitcoin legal tender for Brazil, Argentina — Reaction

Since the beginning of the year, Coinbase has been in the headlines for numerous reasons relating to its business operations.

On Jan. 10 it announced that it will be slashing 20% of its workforce due to operational restructuring. It was on this same day that the brother of the ex-manager of the crypto exchange was sentenced to 10 months in prison due to insider trading, which marked the first known case of its kind in the crypto industry.

A week later on Jan. 18 Coinbase announced that it will stop its operations in Japan due to the ongoing effects of the bear market trading slump.

Despite less than desirable developments from the exchange, around the same time as it closed up shop in Japan it was reported that Coinbase stock had a 69% surge from its all-time low.

Additionally, Cathie Wood’s ARK Investment added $17.6M in Coinbase stock since the start of 2023.

Source : Cointelegraph.com