Crypto.com Fine In Netherlands Reaches Over $3 Million For Violating Regulations

Key Points:

• The Dutch Central Bank fines Crypto.com $3.11 million for unregistered operations in the Netherlands.
• The Crypto.com fine in Netherlands is due to evasion of fees and compliance costs.
• Despite prior licensing, regulatory challenges persist for crypto firms in the Netherlands.

According to Reuters, the Dutch Central Bank has fined cryptocurrency exchange Crypto.com a hefty 2.85 million euros ($3.11 million) for operating in the Netherlands without proper registration.

Read more: How To Close Crypto.com Account: Detailed Guideline!

Crypto.com Fine In Netherlands Appeared For Failure To Comply With Regulatory Requirements

This Crypto.com fine in Netherlands comes as part of the country’s efforts to enforce regulations aimed at preventing money laundering and terrorist financing within the cryptocurrency sector.

Under Dutch law, companies offering crypto services must register with the Dutch Central Bank (DNB). Despite having a significant customer base in the Netherlands, Crypto.com failed to comply with this requirement, allowing it to avoid paying supervisory fees and other compliance costs.

The decision to impose the Crypto.com fine in Netherlands was made in October, although it was only made public recently. The DNB justified the size of the penalty by pointing out the competitive advantage Crypto.com gained by not registering and the potential risks posed by its unregulated operations.

Regulatory Hurdles Continue for Crypto Firms in the Netherlands

The Netherlands has proven to be a challenging market for crypto companies, with regulatory hurdles often complicating their operations. Crypto.com’s experience mirrors that of other exchanges like Binance, which faced difficulties obtaining registration in the country and eventually decided to exit the Dutch market.

Despite these challenges, Crypto.com had previously obtained a license from the DNB in July 2023, allowing it to legally provide cryptocurrency services in the Netherlands. This license was granted after the company demonstrated compliance with anti-money laundering and counter-terrorism financing regulations.

While Crypto.com has faced setbacks in the Netherlands, it has been able to expand its operations elsewhere, including securing registration authorization in Spain.

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