Coinbase, a U.S.-based cryptocurrency exchange, became the first major global crypto exchange approved by the Dutch Central Bank (De Nederlandsche Bank — DNB) to offer its crypto services and products to the Dutch market.
Coinbase Receives DNB Registration Approval
The largest cryptocurrency exchange in the United States, Coinbase becomes the “first major global crypto exchange for receiving DNB registration approval,” marking an important milestone in the firm’s international expansion plans. The latest approval gives Coinbase the ability to offer crypto products and services to the Dutch market and the entire European Union.
In a blog post, the crypto firm announced on September 22, “Coinbase has successfully registered with the Dutch Central Bank (De Nederlandsche Bank — DNB) as a crypto service provider.” The DNB approval allows the crypto exchange to offer a full suite of services and products within its ecosystem to retail and institutional investors in the Netherlands.
Coinbase Europe Limited and Coinbase Custody International Ltd are listed as crypto service providers in DNB’s public register. This makes Coinbase one of the powerful international crypto trading platforms to successfully register with the Dutch central bank allowing it to provide cryptocurrency services alongside other local firms such as Bitvavo B.V. and Commerce B.V.
According to Coinbase’s statement, DNB is regulating “Coinbase Europe Limited and Coinbase Custody International Ltd in compliance with the Anti-Money Laundering and Anti-Terrorist Financing” and the Sanctions Act. The text goes on to say that the crypto services Coinbase in the Netherlands: will offer.
“… are not subject to prudential supervision by DNB or conduct supervision by the AFM. This means that financial and operational risks in the crypto services are not monitored, and there is no specific financial consumer protection.“
DNB’s approval of Coinbase’s registration came barely ten days after the Dutch regulator published guidelines on “sanctions screening for (incoming and outgoing) crypto transactions.” In the Q&A document, the central bank issued several warnings concerning risks associated with cryptocurrencies, including a lack of proper verification processes and anonymity.
Coinbase’s Aggressive Expansion Into Europe
Coinbase’s entry into the Dutch market attests to the company’s aggressive expansion across the Atlantic. The digital asset exchange firm initially announced its intentions to expand into Europe in June 2022. These plans paid off when in July, the San-Francisco-based crypto firm was approved by the Italian AML regulator, Organismo Agenti e Mediator, to operate as a Crypto Service Provider in the country.
The DNB approval means that Coinbase can access the 26-nation European Union market once the E.U.’s markets in crypto assets (MiCA) regulation comes into force. The full text of the MiCA legislation was reportedly completed last week by the E.U. (Coindesk). “Additional registrations or license applications are in progress in several major markets, in compliance with local regulations,” Coinbase said.
The exchange is planning to register in countries like Spain and France
Affirming the company’s ambitions to expand internationally, Coinbase’s Vice President, International and Business Development, Nana Murugesan, said:
“As part of Coinbase’s ambition to be the world’s most trusted and secure crypto platform, we have taken strides to work collaboratively with government, policymakers, and regulators to shape the future responsibly. Coinbase prides itself on being a compliance-led business. The Netherlands is a critical international market for crypto, and I am excited for Coinbase to bring the potential of the crypto economy to the market here.”
As revealed in the announcement, Coinbase now serves customers across almost 40 European countries through dedicated hubs in Ireland, the United Kingdom, and Germany.