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Crypto.com Slapped with $3.1 Million Fine by Dutch Central Bank

Published: Mar 14, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer
The Dutch central bank, De Nederlandsche Bank (DNB), has announced that it has imposed a substantial fine of 2.85 million euros ($3.12 million) on Foris DAX MT Limited (DAX MT). It is the company behind the well-known cryptocurrency exchange, Crypto.com. The penalty, which was issued last October, stems from the platform's failure to register with the regulator before offering its services in the Netherlands. Key points: Crypto.com fined €2.85 million by the Dutch central bank for operating without registration. The fine applies to a period of approximately two years before the exchange is registered with DNB in July 2023. DNB increased the base fine due to the severity and degree of culpability of the non-compliance. Crypto.com had until November 2023 to challenge the fine and is actively appealing the decision. Under the Dutch anti-money laundering and anti-terrorist financing act, companies are required to register with DNB to operate legally in the country. Regulator increased penalty due to Crypto.com's non-compliance Generally, the base fine for this type of violation is set at two million euros. However, the regulator opted to increase the penalty in light of the severity and degree of culpability associated with Crypto.com's non-compliance. In its decision to augment the fine, DNB took into account several factors, including the significant number of Dutch customers utilizing Crypto.com's services and the competitive advantage the exchange had gained by not paying the necessary supervisory fees to the regulator. Moreover, the central bank noted that the non-compliance persisted over an extended period, further justifying the increased penalty. Crypto.com was given until November 2023 to challenge the fine, and the exchange has confirmed that it is actively appealing the decision. A spokesperson for the company expressed disappointment with DNB's ruling, stating, "The fine relates to a past and rectified incident and does not impact our ongoing in-market operations or services. We are disappointed and disagree with DNB's decision to fine Foris DAX MT and are actively appealing this decision." This incident is not the first time the Dutch central bank has imposed substantial fines on cryptocurrency exchanges for operating without proper registration. In the past, DNB has penalized other prominent platforms, such as Binance and Coinbase, for similar violations.

The Dutch central bank, De Nederlandsche Bank (DNB), has announced that it has imposed a substantial fine of 2.85 million euros ($3.12 million) on Foris DAX MT Limited (DAX MT). It is the company behind the well-known cryptocurrency exchange, Crypto.com.

The penalty was issued last October. It stems from the platform’s failure to register with the regulator before offering its services in the Netherlands.

Key points:

  • Crypto.com fined €2.85 million by the Dutch central bank for operating without registration.
  • The fine applies to a period of approximately two years before the exchange is registered with DNB in July 2023.
  • DNB increased the base fine due to the severity and degree of culpability of the non-compliance.
  • Crypto.com had until November 2023 to challenge the fine and is actively appealing the decision.

Under the Dutch anti-money laundering and anti-terrorist financing act, companies are required to register with DNB to operate legally in the country.

Read more: U.S. Treasury Investigates $165M In Potential Crypto Transactions Linked To Hamas

Regulator increased penalty due to Crypto.com’s non-compliance

Generally, the base fine for this type of violation is set at two million euros. However, the regulator opted to increase the penalty in light of the severity and degree of culpability associated with Crypto.com’s non-compliance.

In its decision to augment the fine, DNB took into account several factors, including the significant number of Dutch customers utilizing Crypto.com’s services and the competitive advantage the exchange had gained by not paying the necessary supervisory fees to the regulator.

Moreover, the central bank noted that the non-compliance persisted over an extended period, further justifying the increased penalty.

Read more: Binance Reveals Extensive Cooperation With Nigerian Authorities Amid Turmoil

Crypto.com was given until November 2023 to challenge the fine, and the exchange has confirmed that it is actively appealing the decision. A spokesperson for the company expressed disappointment with DNB’s ruling.

“The fine relates to a past and rectified incident and does not impact our ongoing in-market operations or services. We are disappointed and disagree with DNB’s decision to fine Foris DAX MT and are actively appealing this decision.”

This incident is not the first time the Dutch central bank has imposed substantial fines on cryptocurrency exchanges for operating without proper registration. In the past, DNB has penalized other prominent platforms, such as Binance and Coinbase, for similar violations.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.
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