US cryptocurrency exchange Coinbase registers with Dutch Central Bank
The American cryptocurrency trading platform Coinbase has officially registered with the Dutch Central Bank (DNB). Since the spring of 2020, companies that provide cryptocurrencies services in the Netherlands are obliged to register with the central bank. Coinbase called itself the first major international player in the crypto industry to complete the Dutch registration process.
The DNB introduced the registration obligation for crypto companies as a way of combatting money laundering and the use of cryptocurrency to finance terrorism. When applying, companies must be able to demonstrate that they comply with legislation about sanctions and anti-money laundering.
Companies risk fines if they provide services in the Netherlands regarding cryptocurrencies, such as bitcoin, Ethereum or Tether, before registering. For example, Binance, the world's largest crypto exchange, was fined 3.3 million euros last summer because it was active in the Netherlands without the mandatory registration.
The fact that Coinbase has registered with the DNB does not mean that the platform is checked for matters such as financial stability or risks. The Netherlands Authority for the Financial Markets also will not supervise Coinbase. The American company therefore emphasizes that consumers will not receive specific protections against losses through crypto trading.
Reporting by ANP