Crypto.com has faced a setback in the Netherlands, with the central bank imposing a heavy fine of 2.85 million euros ($3.11 million) on the company. Crypto.com was fined because it didn’t register as required to offer services in the country.
In the Netherlands, firms that want to provide cryptocurrency services should apply for a Central Bank license per the summons that is intended to use the anti-money laundering and counter-terrorism financing laws among the business community.
In October, the central bank decided to apply penalties to the Crypto.com entity, though that was not actually published. The Dutch National Bank (DNB) imposed a hefty fine on Crypto.com as it unlawfully functions in a rather extensive manner in the Dutch market without DNB’s approval.
The Netherlands has historically presented challenges for cryptocurrency companies seeking to expand their operations. As Crypto.com obtained a Virtual Asset Service Provider (VASP) license in Spain, enabling it to offer its products in that country, the Dutch market has proven more difficult to navigate.
Binance faced challenges getting a license in the Netherlands and left when denied. Now, Crypto.com faces the same issue. Observers watch to see how it adapts to Dutch regulations.
Also Read: Binance Uncovers Robust Collaboration Efforts with Nigerian Authorities
