Dutch Central Bank Fines Crypto.com €2.85 Million for Operating Without Registration

The Dutch Central Bank (DNB) has imposed a penalty of €2.85 million ($3.11 million) on the cryptocurrency exchange, Crypto.com, for offering unregistered crypto services in the Netherlands. This breach of Dutch anti-money laundering (AML) laws is considered serious and culpable by DNB.

Violation of Dutch Regulations

The Singapore-based exchange, which sponsors events like the Miami Formula 1 Grand Prix to boost its market presence, has been fined for operating without proper registration in the Netherlands. Crypto.com’s actions flouted regulations intended to obstruct money laundering and terrorist financing.

DNB’s Justification for Enhanced Penalty

According to DNB, Crypto.com’s violation was “serious and culpable,” leading to an enhanced penalty. The regulator explained that this substantial fine was imposed because of the exchange’s many Dutch customers and the competitive advantage gained by avoiding regulatory fees and compliance costs.

Previous Warnings Ignored

In its 36-page report, DNB stated that the fine was imposed for failing to register for AML purposes between May 2020 and November 2022. Despite previous warnings, the exchange continued to operate without proper registration. The penalty was imposed in October but only disclosed recently.

Crypto.com’s Response

Crypto.com has yet to comment on this development.

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