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Crypto.com has incurred a €2.85 million ($3.1 million) fine from the Netherlands Central Bank for operating within the European country without registration for two years. The penalty specifically targets Forix DAX Mt, the Dutch trading entity of Crypto.com.

In a March 13 statement, it was revealed that the Apex Bank imposed this fine on the crypto trading platform in October 2023. However, the exchange objected to the fine during that same period.

Why was Crypto.com fined?

Dutch regulations require crypto firms to register with De Nederlandsche Bank (DNB) under the Anti-money Laundering and Anti-Terrorist Financing Act for operations within the country.

However, despite operating in the country, Crypto.com had failed to register with the authorities for an extended period.

DNB stated that the extent of this noncompliance was severe, prompting a fine exceeding the base amount of €2 million. The regulator highlighted Crypto.com’s substantial customer base in the Netherlands and alleged that the platform gained an unfair competitive edge by evading its regulatory fees for two years.

“A further important reason for the increased fine is that the non-compliance persisted over a prolonged period: from 21 May 2020 until at least 8 November 2022 (the end date of DNB’s examination). This is why DNB considers the non-compliance to be very severe,” DNB added.

This is not the first time DNB has penalized a crypto-related platform for failing to adhere to local regulations. Last year, the regulator fined major crypto platforms, Binance and Coinbase, over $3 million for allegedly operating in the country without legal registrations.

Consequently, Binance exited the country after its inability to secure licensing.

Available information on the regulator’s website shows that Crypto.com has already lodged an appeal against the fine in October 2023.

Moreover, the exchange registered with the Apex Bank last July, becoming one of the 40 crypto entities licensed in the country.

Crypto.com has yet to respond to CryptoSlate’s request for comment as of press time.

The post Crypto.com hit with €2.85 million fine by Dutch Central Bank for regulatory noncompliance appeared first on CryptoSlate.

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