Generative Data Intelligence

Coinbase Has Not Registered with DNB: Fine for Non-Compliance


  • Coinbase has been penalized with a fine of $3.6 million by the DNB.
  • The charge is based on Coinbase’s non-compliance with the laws of the Netherlands.
  • The company has been offering services to the Netherlands without registering with the DNB.

Coinbase has been penalized by the Dutch Central Bank, De Nederlandsche Bank (DNB) with a charge of $3.6 million for running crypto services in the Netherlands without registering with the DNB.

On January 26, the DNB shared the news on the imposition of the fine on Coinbase for “providing crypto services without the legally required registration until 22 September 2022.”

Notably, the Dutch Central Bank hasprovided the requirements of registration, by which the companies become compliant with the laws:

Companies wishing to provide crypto services in the Netherlands are required to register with the DNB under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act.

It is noteworthy that Coinbase shared its disagreement with the enforcement order and told that it is “carefully considering the objections and appeals process.”

Following the DNB’s order, a Coinbase spokesperson said:

Coinbase is committed to compliance in all jurisdictions in which it operates and will continue to provide safe, trusted services to new and existing Dutch customers.

Significantly, the bank claimed that the crypto exchange had been running illegally in the Netherlands from November 2020 to August 2022. The claim is based on the fact that the company hadn’t adhered to the laws of the country.

Specifically, Coinbase has been penalized based on the category 3 fine, in which the maximum amount of the fine is 4 million Euros. However, the authority increased the fund “due to the severity and degree of culpability of the non-compliance.”

Considering the size of Coinbase as a company and taking into account the “significant number of customers” the company has in the Netherlands, the authority charged a considerable penalty for its non-compliance.

In addition, the company hasn’t paid any supervisory fees to the DNB or “incurred other costs in connection with the DNB’s regular supervision activities.”

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