The Dutch central bank, De Nederlandsche Bank (DNB), has fined Coinbase, a cryptocurrency exchange, 3.3 million euros ($3.6 million) for not following local rules for financial service providers.
The DNB says that Coinbase did not get the right registration before starting to offer services in the Netherlands. The bank also said it took into account how big Coinbase is as a company and how many customers it has in the Netherlands.
In December 2022, the DNB also said that another cryptocurrency exchange, KuCoin, was operating without a license and was breaking the law by offering services.
In 2021, another exchange, Binance Holdings Limited, was also accused of the same thing and had to pay more than 3 million euros in fines.
Coinbase has been in the news a lot recently for different reasons. In January, it announced that it would be cutting 20% of its employees because of changes in how it does business.
On the same day, the brother of a former manager of the exchange was sent to prison for 10 months for insider trading, which was the first time that had happened in the cryptocurrency industry.
A week later, Coinbase said it would stop doing business in Japan because of a drop in trading. But at the same time, the value of Coinbase’s stock went up 69% from its lowest point. A company called ARK Investment also invested $17.6 million in Coinbase’s stock at the start of 2023.
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