The Dutch Central Bank, De Nederlandsche Bank (DNB), has imposed a fine of 3.3 million euros on cryptocurrency exchange Coinbase (NASDAQ:COIN) for offering services in the Netherlands without registering with it. Rival Binance was also fined a similar amount by DNB in July 2022.
Crypto companies in the Netherlands are supposed to register with the DNB under the Anti-Money Laundering and Anti-Terrorist Financing Act. Coinbase was out of compliance from November 15, 2020, until at least August 24, 2022. The company registered with DNB on September 22, 2022. DNB stated that a “large number of unusual transactions may have gone unnoticed by the investigative authorities during this period.”
It’s worth noting that while the base amount in this fine category is 2 million euros, DNB applied a higher fine due to the “severity and degree of culpability of the non-compliance.” DNB explained that the higher fine was imposed considering certain factors, like Coinbase’s position as one of the largest crypto service providers globally and its significant customer base in the Netherlands.
The fine was also increased as Coinbase did not pay any supervisory fees to DNB or incur other costs related to the bank’s supervision activities. Also, the non-compliance persisted over a prolonged period. Nonetheless, the central bank reduced the fine by 5%, saying, “Coinbase had always intended to obtain registration with DNB.” Coinbase has time until March 2, 2023, to object to the fine. Earlier this month, Coinbase reached a $100 million settlement with the New York Department of Financial Services over non-compliance with the state’s anti-money laundering laws.
Is Coinbase Stock a Buy?
Wall Street is sidelined on Coinbase stock, with a Hold consensus rating based on nine Buys, eight Holds, and five Sells. The average price target of $55.60 suggests nearly 5% upside from current levels. Shares have rallied about 58% year-to-date.
