The Dutch central bank, De Nederlandsche Bank (DNB), has fined Crypto.com for operating without registration for over two years. The fine was imposed in October but was only made public on March 13. The reason for the delay in public disclosure or why it was announced now has not been clarified.
DNB Makes a Noteworthy Announcement
On October 23, DNB issued a fine of 2.85 million euros to Foris DAX MT, known publicly as Crypto.com, for providing crypto services without registration from May 21, 2020, to at least November 8, 2022. May 21, 2020, is known as the date when DNB introduced registration requirements.
Crypto service providers are required to register under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act. DNB stated that the base amount of the fine was 2 million euros, but it was increased due to the severity of the violation and the degree of culpability.
Crypto.com gained an advantage over competitors by not paying regulatory fees and compliance costs. During that period, Crypto.com had a significant number of customers and DAX MT could not report unusual transactions to the Financial Intelligence Unit due to the lack of registration. The Crypto.com team filed an appeal against the DNB decision on October 9.
The Netherlands and the Crypto Market
Crypto.com obtained registration in the Netherlands in July 2023. A DNB spokesperson stated at the time that despite operating illegally, Dutch users were legally allowed to use the exchange. On March 13, a spokesperson for the exchange commented:
“The fine relates to an incident in the past that has been resolved and does not affect our ongoing market operations or services. We addressed the concerns raised in a timely and transparent manner.”
DNB had introduced registration requirements for crypto service providers in April 2022; Binance was fined 3.3 million euros for operating without registration after receiving a warning from DNB in August 2021. Following an unsuccessful registration attempt, Binance announced it would cease operations in the Netherlands in June 2022. Currently, there are 41 registered crypto service providers in the Netherlands.
