News View Non-AMP

What Led to Coinbase’s $36 Million Fine? Uncovering the Truth

Published by
Qadir AK

Coinbase, one of the largest cryptocurrency exchanges in the world, has been hit with a $36 million fine by the Dutch Central Bank (DNB) in the Netherlands for violating regulations. DNB stated that Coinbase has a substantial amount of users from Northwest Europe and has not been compliant.

The fine marks the largest penalty ever imposed on a cryptocurrency exchange. It is a significant blow to Coinbase, which has become one of the most well-known and respected names in the crypto industry.

DNB further clarified that Coinbase did not register with the DNB that monitors Anti-money laundering activities in the country. According to Dutch law, cryptocurrency companies should register with the bank first. This law was passed in May 2020 to check money laundering and terrorism using cryptocurrencies which can be anonymous. 

DNB said that Coinbase had failed to implement proper anti-money laundering and know your customer procedures. As AML and KYC are important to prevent the use of digital currencies for illegal activities, failure to comply has severe repercussions. They did not comply with the regulations over the time period extending from November 2020 to August 2022. 

Coinbase has time till March 2, 2023, to appeal to the central bank on the fine. 

Earlier this Jan 2023, Coinbase was fined $50 million by the New York State Department of Financial Services for breaking laws against money laundering. They also had to spend an extra $50 million over 2 years to fix U.S. security compliance and other regulations.

What this fine would mean to the crypto industry?

Coinbase’s $36 million fine serves as a reminder of the importance of compliance in the cryptocurrency industry. The company has stated that it will cooperate with the regulator and take all necessary steps to ensure that it is compliant with regulations in the future. Other cryptocurrency exchanges should also take note of the fine and ensure that they are following all regulations to avoid similar penalties.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

WazirX News: Delhi High Court Questions WazirX Crypto Restructuring Plan; 93% Users Back Recovery SchemeWazirX News: Delhi High Court Questions WazirX Crypto Restructuring Plan; 93% Users Back Recovery Scheme

WazirX News: Delhi High Court Questions WazirX Crypto Restructuring Plan; 93% Users Back Recovery Scheme

The Delhi High Court has stepped in as WazirX faces backlash for allegedly restructuring user…

April 7, 2025
Cardano Price Prediction 2025, 2026 – 2030: Will ADA Price Hit $2?Cardano Price Prediction 2025, 2026 – 2030: Will ADA Price Hit $2?

Cardano Price Prediction 2025, 2026 – 2030: Will ADA Price Hit $2?

Story Highlights The live price of the Cardano token is . ADA coin price could…

April 7, 2025
Stock Market Crash, Gold Price Tanks, Crypto Follows: Investors Gripped by FearStock Market Crash, Gold Price Tanks, Crypto Follows: Investors Gripped by Fear

Stock Market Crash, Gold Price Tanks, Crypto Follows: Investors Gripped by Fear

Global financial markets are witnessing an extreme panic sell-off not seen since the peak of…

April 7, 2025
Crypto Price Today Crashes : When Will Crypto Go Back Up?Crypto Price Today Crashes : When Will Crypto Go Back Up?

Crypto Price Today Crashes : When Will Crypto Go Back Up?

The crypto market has been rocked by a sharp sell-off following Donald Trump’s surprise announcement…

April 7, 2025
More than $300B Wiped Out—Look Out for These Altcoins for a Quick Recovery More than $300B Wiped Out—Look Out for These Altcoins for a Quick Recovery 

More than $300B Wiped Out—Look Out for These Altcoins for a Quick Recovery

The global markets plummet as the tariff war escalates after Donald Trump’s Liberation Day. The…

April 7, 2025
Is WazirX About to Make a Comeback?Is WazirX About to Make a Comeback?

Is WazirX About to Make a Comeback?

WazirX has gained major support for its restructuring plan, with 94.6% of voting creditors (by…

April 7, 2025