Netherlands fined crypto exchange Coinbase
2023.01.26 09:54
Netherlands fined crypto exchange Coinbase
By Tiffany Smith
Budrigannews.com – On January 26, the Dutch central bank, De Nederlandsche Bank (DNB), fined cryptocurrency exchange Coinbase 3.3 million euros (3.6 million dollars) for not adhering to local regulations for financial service providers.
Before beginning operations in the Netherlands, the exchange is said to have failed to obtain the necessary registration. The DNB stated that it took into account Coinbase’s overall size as well as its “significant number of customers in the Netherlands.”
Between November 2020 and August 2022, the authorities claimed, Coinbase was in violation.
The DNB targeted the cryptocurrency exchange KuCoin in December 2022, claiming that it was also providing services illegally and operating without a license.
It made similar allegations against Binance Holdings Limited in 2021, and the exchange paid more than 3 million euros in fines for the violations.
Coinbase has been in the news for a variety of reasons related to its business operations since the beginning of the year.
It announced on January 10 that it would reduce its workforce by 20% as a result of operational restructuring. The first known case of its kind in the cryptocurrency industry occurred on the same day that the brother of the former manager of the crypto exchange was given a 10-month prison sentence for insider trading.
Due to the ongoing effects of the bear market trading slump, Coinbase announced on January 18 that it will cease operations in Japan.
Despite the exchange’s less-than-pleasant developments, it was reported that Coinbase stock rose 69% from its all-time low around the same time it closed in Japan.
In addition, Cathie Wood’s ARK Investment has increased its holdings of Coinbase stock by $17.6 million since the beginning of 2023.
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