- Cryptocom was fined 2.5 million euros by the Dutch central bank for operating illegally in the country without proper registration from May 2020 to November 2022.
- The lack of registration allowed Cryptocom to avoid fees and compliance costs while also preventing it from reporting suspicious transactions.
- Cryptocom addressed the issue by registering in July 2023 and says past non-compliance does not impact current operations.
The central bank of The Netherlands has revealed that it fined a major cryptocurrency exchange for operating illegally in the country for over two years.
Cryptocom Fined 2.5 Million Euros
In October 2022, De Nederlandsche Bank (DNB), the central bank of The Netherlands, fined Cryptocom 2.5 million euros for providing crypto services without proper registration from May 2020 to November 2022.
Cryptocurrency exchanges in The Netherlands are required to register with the DNB under anti-money laundering regulations. The fine was increased due to the severity and culpability of the violation. Cryptocom filed an objection but went on to register and continue operating in July 2023.
Unfair Advantage and Compliance Issues
The DNB stated that Cryptocom enjoyed an unfair advantage over competitors by avoiding fees and compliance costs during the period. It also could not report suspicious transactions to authorities due to the lack of registration.
Ongoing Operations Continue
Cryptocom said the fine relates to a past issue that has been rectified and does not impact current operations. The company addressed the DNB’s concerns in a timely manner. Crypto services in The Netherlands can continue despite past non-compliance.
Registration Requirements Instituted
The DNB instituted registration requirements for crypto companies in May 2020. Binance was also fined 3.3 million euros in 2021 for non-compliance and eventually ceased Dutch operations. There are currently 41 registered crypto providers in The Netherlands.
