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Crypto.com is facing regulatory hurdles and a fine from the Dutch central bank.

Crypto.com is facing regulatory difficulties due to a penalty imposed by the Dutch central bank. This is another example of the increasing regulatory pressure on cryptocurrency companies.

Date: 2024-03-15 Author: Łukasz Michałek
Crypto.com is facing regulatory hurdles and a fine from the Dutch central bank.

Dutch central bank De Nederlandsche Bank (DNB) has imposed a hefty fine on cryptocurrency exchange Crypto.com. The €2.85 million ($3 million) fine was imposed in October of the previous year, but was not announced until March 13.

The exchange was penalized for providing cryptocurrency exchange services that were not registered. Moreover, this took place for two years, from May 21, 2020 until at least November 8, 2022. According to the Dutch Anti-Money Laundering and Countering the Financing of Terrorism Act, on May 21, 2020. DNB forced crypto service providers to register.

Increased penalty for Crypto.com due to significant degree of violation

The basic amount of the fine was set at 2 million euros. However, it was increased due to the severity of the violation and the degree of culpability. By operating without registration, Crypto.com enjoyed an unfair advantage over its competitors, avoiding supervisory fees and compliance costs.

In addition, the company was unable to report unusual transactions to the Dutch Financial Intelligence Unit during the non-compliance period due to its lack of registration. on October 9, Crypto.com protested the DNB’s decision and challenged the penalty. But the company has since been registered in the Netherlands.

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Binance was also fined €3.3 million ($3.5 million at the time). After receiving a warning from DNB in August 2021, the exchange was fined for operating without registration. After an unsuccessful attempt to register in the Netherlands, Binance announced it would cease operations in that country in June 2022.

Similarly, Coinbase was fined €3.3 million ($3.6 million) by the Dutch Central Bank (DNB) last June for failing to obtain the required registration before operating in the jurisdiction.

There are currently 41 crypto service providers registered in the Netherlands. All meet the regulatory requirements set by the DNB.

Crypto.com’s transaction volume is growing rapidly

Crypto.com has seen a surge in transaction volume, outperforming major competitors Kraken and KuCoin. The exchange’s rising trading volume is the result of the platform’s extensive marketing campaign over the past few years.

The platform even aired a commercial during the 2022 Super Bowl, featuring basketball star LeBron James with the slogan “luck favors the brave.”

It also launched a $100 million ad campaign in 2021 in 20 countries featuring actor Matt Damon, signed sponsorship deals, and opened a new charter with the Philadelphia 76ers, Ultimate Fighting Championship and Formula 1 Racing teams.

In addition, the company spent $700 million for the naming rights to the former Staples Center, where the Los Angeles Lakers play . The venue is now officially called Crypto.com Arena.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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