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Leading digital asset exchange
Exchange Exchanges are known as markets that support trading in derivatives, commodities, securities and other financial instruments. Generally, exchanges can be accessed via digital platforms or sometimes at real addresses where investors arrange to place trades. Among the main responsibilities of the exchange is upholding honest and fair trading practices. This plays an important role in ensuring that the distribution of the security level supported on the exchange is effective Exchanges are known as markets that support trading in derivatives, commodities, securities and other financial instruments. Generally, exchanges can be accessed via digital platforms or sometimes at real addresses where investors arrange to place trades. Among the main responsibilities of the exchange is upholding honest and fair trading practices. This plays an important role in ensuring that the distribution of the security level supported on the exchange is effective
According to a DNB press release, fines were imposed for unauthorized crypto activity on the Coinbase exchange, from November 2020 to at least August 24, 2022.
Coinbase Europe subsidiary, Coinbase Europe Limited, has been operating unregistered in the Netherlands since at least November 2020. Early May of the same year, DNB imposed registration requirements on all cryptocurrency service providers due to the high risks of money laundering and terrorist financing.
The basic fine for a violation committed by Coinbase is €2 million, but it was increased due to the fact that Coinbase is one of the largest cryptocurrency exchanges in the world and has many customers in the Netherlands.
“In addition, Coinbase has enjoyed a competitive advantage in not paying any monitoring fees to DNB or incurring any other fees in connection with DNB’s regular surveillance activities. A further important reason for the increase in fines is that non-compliance persists over the long term,” said DNB.
The decision to impose a fine was made on January 18, but the official announcement was only released to the media on January 26.
DNB imposed an administrative fine on Coinbase Europe Limited for providing crypto services without legally required registration until September 22, 2022. https://t.co/wEjAez6GDs pic.twitter.com/cDzXxKRqq4
— De Nederlandsche Bank (@DNB_NL) January 26, 2023
Binance Pays a Similar Fine in July
Dutch regulators imposed a similar fine on Binance last July. Binance was required to pay a penalty of €3.3 million for offering local investors access to cryptocurrency services without proper regulation.
DNB’s description at the time was very similar: Binance was a large exchange with a sizable customer base, which exercised a competitive advantage by failing to comply with local regulations. The Dutch regulator points to the anonymity of cryptocurrencies, which can be a tool for money laundering without proper supervision.
Registration requirements for crypto service providers were introduced on 21 May 2020 due to the high risks of money laundering and terrorist financing associated with crypto services. This is related to the anonymity associated with crypto transactions. The registration requirements allow DNB to more effectively monitor risks of illicit financial flows,” the regulator explained.
Nearly a year earlier, DNB had issued a public warning against Binance for unauthorized activity. Several other regulators have issued similar notices.
Watch the recent FMLS 2022 Executive Interview with Lory Kehoe, Director of EMEA Business Development at Coinbase.
Coinbase Facing Crypto Winter Problems
The fine imposed on Coinbase adds to the recent problems the platform has faced. At a time when rival Binance is increasing its headcount, Coinbase has decided to shed its workforce in the face of a prolonged cryptocurrency winter.
Due to staff reductions, the platform has decided to suspend its operations in the Japanese market. All local customers must withdraw their funds and transfer them to other platforms by February 16, 2023.
“Due to market conditions, our company has made the difficult decision to cease operations in Japan and conduct a thorough review of our business in the country. However, we are committed to making this transition as smooth as possible for our valued customers,” Coinbase wrote in a blog post. .
Many other cryptocurrency exchanges have reported layoffs over the period. Luno announced a similar decision this week, reducing its workforce by 35%. Previously, potential reductions were announced by Crypto.com, looking to lay off up to 20% of current employees.
Leading digital asset exchange Coinbase has been fined $3.3 million by the Dutch central bank, De Nederlandsche Bank (DNB). A fine of the same amount was paid months earlier by rival platform Binance.
According to a DNB press release, fines were imposed for unauthorized crypto activity on the Coinbase exchange, from November 2020 to at least August 24, 2022.
Coinbase Europe subsidiary, Coinbase Europe Limited, has been operating unregistered in the Netherlands since at least November 2020. Early May of the same year, DNB imposed registration requirements on all cryptocurrency service providers due to the high risks of money laundering and terrorist financing.
The basic fine for a violation committed by Coinbase is €2 million, but it was increased due to the fact that Coinbase is one of the largest cryptocurrency exchanges in the world and has many customers in the Netherlands.
“In addition, Coinbase has enjoyed a competitive advantage in not paying any monitoring fees to DNB or incurring any other fees in connection with DNB’s regular surveillance activities. A further important reason for the increase in fines is that non-compliance persists over the long term,” said DNB.
The decision to impose a fine was made on January 18, but the official announcement was only released to the media on January 26.
DNB imposed an administrative fine on Coinbase Europe Limited for providing crypto services without legally required registration until September 22, 2022. https://t.co/wEjAez6GDs pic.twitter.com/cDzXxKRqq4
— De Nederlandsche Bank (@DNB_NL) January 26, 2023
Binance Pays a Similar Fine in July
Dutch regulators imposed a similar fine on Binance last July. Binance was required to pay a penalty of €3.3 million for offering local investors access to cryptocurrency services without proper regulation.
DNB’s description at the time was very similar: Binance was a large exchange with a sizable customer base, which exercised a competitive advantage by failing to comply with local regulations. The Dutch regulator points to the anonymity of cryptocurrencies, which can be a tool for money laundering without proper supervision.
Registration requirements for crypto service providers were introduced on 21 May 2020 due to the high risks of money laundering and terrorist financing associated with crypto services. This is related to the anonymity associated with crypto transactions. The registration requirements allow DNB to more effectively monitor risks of illicit financial flows,” the regulator explained.
Nearly a year earlier, DNB had issued a public warning against Binance for unauthorized activity. Several other regulators have issued similar notices.
Watch the recent FMLS 2022 Executive Interview with Lory Kehoe, Director of EMEA Business Development at Coinbase.
Coinbase Facing Crypto Winter Problems
The fine imposed on Coinbase adds to the recent problems the platform has faced. At a time when rival Binance is increasing its headcount, Coinbase has decided to shed its workforce in the face of a prolonged cryptocurrency winter.
Due to staff reductions, the platform has decided to suspend its operations in the Japanese market. All local customers must withdraw their funds and transfer them to other platforms by February 16, 2023.
“Due to market conditions, our company has made the difficult decision to cease operations in Japan and conduct a thorough review of our business in the country. However, we are committed to making this transition as smooth as possible for our valued customers,” Coinbase wrote in a blog post. .
Many other cryptocurrency exchanges have reported layoffs over the period. Luno announced a similar decision this week, reducing its workforce by 35%. Previously, potential reductions were announced by Crypto.com, looking to lay off up to 20% of current employees.
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