26 January 2023, 7:18 Local Time | AK Qadir
Being one of the largest Cryptocurrency Exchanges in the world, Coinbase’s reputation is at stake after being fined $ 36 million by the Dutch Central Bank. Reportedly, Coinbase violated the regulations of the bank in the Netherlands, where DNB claims that a notable number of Coinbase users are non-compliant. Knowingly, this is the largest amount of fine imposed on any Cryptocurrency exchange to date. Previously, Coinbase was fined, for which the news was published earlier this month. The reason behind this fine is explained below:
Dutch Central Bank’s Clarification
DNB states that Coinbase has not registered itself and its activities with the DNB’s Anti-Money Laundering monitoring in the country. Whereas, according to Dutch Law, cryptocurrency exchanges must register with the bank. Initially, this law was passed in 2020 to monitor money laundering and terrorism funding activities. DNB further stated that Coinbase has failed to implement robust AML and KYC procedures. Cryptocurrency being a digital currency can easily and swiftly be used for illegal activities. Hence it is mandatory for every Cryptocurrency exchange to regulate its activities as per KYC and AML. Coinbase showed ignorance in this regard and stood non-compliant with the regulations from November 2020 to August 2022.
A reminder to crypto exchanges for KYC and AML regulations
This fine shall act as a reminder to the cryptocurrency exchanges to stay compliant with KYC and AML regulations at all times. Another positive sign is that Coinbase showed full cooperation and embraced the charged fine, and ensured its compliance with the KYC/AML in the future.
Disclaimer: This news story is taken from Coinpedia. Click below to view:
What Led to Coinbase's $36 Million Fine? Uncovering the Truth - Coinpedia Fintech News