Foris DAX MT, the holding company of Crypto.com, has incurred a hefty fine of €2,850,000 (equivalent to approximately $3.1 million) imposed by the Dutch central bank, De Nederlandsche Bank (DNB). The fine was levied due to violations of local anti-money laundering regulations and legislation pertaining to counteracting terrorist financing.
Under the anti-terrorist financing legislation, companies providing cryptocurrency services within the Netherlands are mandated to register with DNB. This requirement was reiterated in a press release issued on March 13. The imposition of penalties is a consequence of failing to comply with this regulatory mandate.
In terms of the “extent and length of the failure to comply,” which persisted from late May 2020 until at least early November 2022, DNB categorized Foris DAX MT’s violation as falling within category 3. A spokesperson from Crypto.com expressed discontent with the imposed fine, that the issue had been rectified previously and does not impact the company’s present operations or services.
“We are disappointed and disagree with DNB’s decision to fine Foris DAX MT and are actively appealing this decision. Moreover, we have already addressed the concerns raised in a timely and transparent manner and received regulatory approval from DNB as a crypto service provider in July last year.”A spokesperson for Crypto.com
Crypto.com Responds To DNB’s Enforcement With Regulatory Commitment
Crypto.com declared that it will work with DNB and international regulatory organisations. With this fine, the Dutch central bank has fined a cryptocurrency corporation six figures for the first time.The authority penalised cryptocurrency firm Binance $3.3 million in April 2022 for operating in the nation without registering.
In July 2023, Binance made the decision to exit the Netherlands market, despite initially communicating to users that it was in the process of obtaining a virtual asset service provider (VASP) license from DNB.
Similarly, Coinbase Europe faced repercussions from the Dutch central bank in January 2023, when it was levied an administrative fine totaling €3.33 million for conducting operations within the country without completing the necessary registration with the monetary authority.