Crypto.com Faces 2.85 Million Euro Fine from Dutch Central Bank

The Dutch central bank said on Wednesday that, in October of last year, it had fined the cryptocurrency exchange Crypto.com 2.85 million euros ($3.12 million). De Nederlandsche Bank (DNB) registration is required for services rendered in the Netherlands, and Crypto.com’s parent company, Foris DAX MT Limited (DAX MT), was penalized for that fact.

Before registering with DNB in July 2023, DAX MT reportedly functioned without a valid registration for around two years, according to the notification the regulator issued. Companies that provide financial services in the Netherlands are obliged by law to register with DNB in order to lawfully operate in the nation under the anti-money laundering and anti-terrorist financing legislation. DNB decided to raise the penalties because of the seriousness and length of the infraction, even though the basic fine for this kind of non-compliance was set at two million euros.

Rationale Behind the Fine

DNB underscored the significance of the violation, noting that DAX MT had a substantial customer base in the Netherlands, benefiting from its crypto services without fulfilling regulatory obligations. Moreover, the company’s non-compliance enabled it to evade supervisory fees over an extended period, providing it with a competitive advantage in the market.

Crypto.com started the challenge even though it has until November 2023 to dispute the punishment. Speaking on behalf of the firm, a spokesman acknowledged that they were disappointed by DNB’s ruling but emphasized that the punishment was related to a previous event that has already been resolved and has no bearing on their current business operations or offerings.

DNB has punished bitcoin exchanges for operating without the required registration on previous occasions. For such violations, the SEC has already fined major exchanges like Binance and Coinbase hefty sums of money.