The Dutch Central Bank, known as De Nederlandsche Bank (DNB), recently fined Crypto.com, also known as Foris DAX MT, for operating without proper registration. This decision, disclosed on March 13, pertains to activities from May 21, 2020, to November 8, 2022. The registration requirement for crypto service providers under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act started on May 21, 2020.
The fine was set at 2.85 million euros, higher than the base fine of 2 million euros due to the severity of the violation. Crypto.com’s lack of registration gave it an edge by saving on supervisory fees and compliance costs, but it also prevented the company from reporting suspicious transactions to the Financial Intelligence Unit-Netherlands.
Fine for Foris DAX MT Limited (https://t.co/GpTkySLssK) for providing crypto services without the required registration.https://t.co/qCNBA6iW5H
— De Nederlandsche Bank (@DNB_NL) March 13, 2024
Moving Toward Compliance
After receiving the fine, Crypto.com expressed its disagreement with the decision but proceeded to comply by registering in The Netherlands by July 2023. This adjustment meant that Dutch users could continue using Crypto.com legally.
Spokespersons for both Crypto.com and the DNB highlighted that the incident was a thing of the past and had been addressed. They noted that this would not affect Crypto.com’s current or future operations and services in the market. The company has made efforts to ensure compliance and transparency following the incident.
The fine against Crypto.com is part of a broader trend of regulatory enforcement in The Netherlands, which saw Binance receiving a 3.3 million euro fine for a similar issue. Binance later halted its Dutch operations after failing to register successfully. Currently, The Netherlands boasts 41 registered crypto service providers, illustrating the country’s commitment to regulating the cryptocurrency sector.
This narrative underscores the growing emphasis on regulatory compliance in the cryptocurrency industry. Companies are increasingly recognizing the importance of adhering to legal requirements to ensure their longevity and maintain the trust of their users.
