Penalties for unlicensed period
The central bank of the Netherlands fined crypto asset (virtual currency) exchange Coinbase about 470 million yen (about 3.3 million euros) on the 26th for providing services in the country without registering a license in the past. announced that it did.
Coinbase completed its business registration with the Dutch central bank in September 2022, but the period prior to this (from November 15, 2020 to late August 2022) was unregistered.
Relation: Coinbase registered with Dutch Central Bank
Companies offering cryptocurrency services in the Netherlands are required to register with the Dutch Central Bank under the Dutch Anti-Money Laundering and Terrorist Financing Act.
The Dutch central bank said Coinbase’s violations fall under Category 3, with a fine threshold of around ¥280 million (€2 million). This time, a fine exceeding the standard amount was imposed.
As for the reasons for raising the fine, first, he cited the degree of responsibility given to Coinbase, which is one of the largest cryptocurrency service providers in the world and has a large number of users in the Netherlands.
He further noted that Coinbase had a competitive advantage in that it did not pay supervision fees to the Dutch central bank or incur other related costs. He also said he took into account the long period of unregistration of just under two years.
However, he added that the fine was reduced by 5% in light of Coinbase’s intention to obtain license registration during the non-registration period. Until March 2, 2023, Coinbase can appeal the fine.
What is coinbase
A cryptocurrency exchange headquartered in San Francisco, California, United States. Coinbase was founded in 2012. A person who had experience as an engineer for the world’s largest minpaku service and a person who had experience as a foreign exchange dealer at a major securities company jointly launched the business, and in a short period of time it became a top venture in the cryptocurrency industry.
The Dutch central bank imposed a similar fine on Binance in July 2022. At that time, the amount was 470 million yen.
Relation: Dutch central bank fines 470 million yen to Binance
In December 2022, the Dutch central bank also issued a warning to cryptocurrency exchange KuCoin for operating without a license in the Netherlands.
In response, a KuCoin spokesperson commented:
KuCoin is registered in Seychelles. As a global exchange, KuCoin keeps abreast of the latest regulations around the world and respects local laws and regulations outside the Seychelles.
However, KuCoin is not a Dutch entity and does not have offices in the Netherlands.
Review of Japan business
Coinbase just announced on the 18th that it will conduct a comprehensive review of its Japan business. Transactions with existing Japanese users will also be suspended. Coinbase is part of a global downsizing.
Nana Murugesan of Coinbase’s business development and international department explained that the reason why Japan is included in the target of business reduction is “to review international investment due to the recession in the digital asset area.”
Relation: Coinbase officially announces business review to stop virtual currency trading service in Japan
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