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DNB Imposes Fine on Crypto.com
The Dutch Central Bank, De Nederlandsche Bank (DNB), has imposed a significant fine on crypto exchange Crypto.com. The fine, totaling 2.85 million euros ($3 million), was imposed on Foris DAX MT, operating as Crypto.com, for providing crypto exchange services without proper registration.
Violation Details
- The violation occurred over a period of two years, from May 21, 2020, until at least November 8, 2022.
- The DNB introduced registration requirements on May 21, 2020, under the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act.
Increased Fine Amount
The base amount of the fine was initially set at 2 million euros but was increased due to the severity of the violation and the degree of culpability. Operating without registration gave Crypto.com an unfair advantage over competitors by evading supervisory fees and compliance costs.
Response from Crypto.com
Crypto.com objected to the DNB’s decision on October 9 but has since obtained registration in The Netherlands in July 2023.
Regulatory Landscape in The Netherlands
The incident with Crypto.com follows the DNB’s implementation of registration requirements for crypto service providers in April 2022. Currently, there are 41 registered crypto service providers in The Netherlands complying with DNB regulations.
Crypto.com’s Trading Volume Growth
Crypto.com has seen a surge in spot trading volume, surpassing competitors like Kraken and KuCoin. This growth follows extensive marketing efforts, including high-profile sponsorships and advertising campaigns.
Marketing Campaign Highlights
- In 2021, Crypto.com launched a $100 million advertising campaign across 20 countries featuring actor Matt Damon.
- The exchange also secured naming rights to the former Staples Center, now known as Crypto.com Arena, with a $700 million investment.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
