The Netherlands’ central bank, De Nederlandsche Bank (DNB), has levied a hefty $3 million fine against Crypto.com for operating without registration for over two years. Crypto.com, also known as Foris DAX MT, provided crypto services from May 2020 to November 2022 without adhering to Dutch Anti-Money Laundering laws, allowing them to evade supervisory fees and compliance costs. However, this failure to register prevented them from reporting unusual transactions, a crucial aspect in combating money laundering and terrorist financing.
Despite Crypto.com’s subsequent registration in July 2023, the incident highlights the challenges and consequences of disregarding regulatory requirements. Additionally, the comparison with Binance’s similar fines and subsequent exit from the Dutch market emphasizes the competitive landscape and regulatory scrutiny facing crypto service providers. Kraken’s recent expansion into the Dutch market, backed by regulatory approval, further intensifies competition and signals the growing importance of regulatory compliance in the European crypto space.
