Global: Crypto.com to Challenge €2.85 Million Fine by Dutch Regulator for Unregistered Operations

Crypto exchange Crypto.com has been slapped with a hefty fine of 2.85 million euros ($3.12 million) by the Dutch central bank, the regulator announced on Wednesday.

The fine was levied against Foris DAX MT Limited (DAX MT), the entity behind Crypto.com, for providing services in the Netherlands without obtaining registration from De Nederlandsche Bank (DNB), according to the notice. This penalty was applicable for a period spanning approximately two years before the platform eventually registered with the regulator in July 2023.

Under the Dutch anti-money laundering and anti-terrorist financing act, companies are mandated to register with DNB to legally operate in the country. While the base fine for such violations stands at two million euros, the regulator disclosed that it augmented the fine “due to the severity and degree of culpability of the non-compliance.”

Crypto.com intends to appeal the fine, stating that it was operating in good faith and has since taken steps to rectify the situation. The exchange emphasized its commitment to compliance with regulatory requirements in all jurisdictions where it operates.

The Dutch central bank, however, maintained its stance, emphasizing the importance of adherence to registration protocols to ensure the integrity of financial services and combat illicit activities effectively.

This development underscores the growing regulatory scrutiny faced by cryptocurrency exchanges worldwide and highlights the imperative for robust compliance measures in the rapidly evolving digital asset landscape.