- Why the announcement was delayed or not made public at the time remains a mystery.
- The Netherlands officially recognized crypto.com in July 2023.
For running for more than two years without registration, Crypto.com was penalized by the Dutch central bank, De Nederlandsche Bank (DNB). The fine was publicized on March 13, although it was levied in October. Why the announcement was delayed or not made public at the time remains a mystery.
For offering cryptocurrency services without registration from May 21, 2020, until at least November 8, 2022, Foris DAX MT, doing business as Crypto.com, was fined 2.85 million euros ($3 million at the time) by the DNB on October 23, for violations of the law. Registration was made mandatory by the DBN on May 21, 2020.
Stringent Compliance
The Dutch Act Against Money Laundering and Terrorist Financing mandates that crypto service providers register. The penalties were raised from 2 million euros because of the seriousness of the infraction and the level of responsibility, according to the DNB.
Because it avoided paying compliance expenses and supervisory fees, Crypto.com had a leg up on the competition. Crypto.com had a “significant number” of customers during the period of non-compliance, and as DAX MT was not registered, it could not submit suspicious transactions to the Financial Intelligence Unit-Netherlands. On October 9th, Crypto.com submitted an official opposition to the DNB ruling.
Moreover, the Netherlands officially recognized crypto.com in July 2023. The DNB began requiring crypto service providers to register in April 2022. After a warning from the DNB in August 2021, Binance was fined 3.3 million euros, or $3.5 million at the time, for not being registered. After an unsuccessful effort to register, Binance stated in June 2022 that it will stop operations in The Netherlands.
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