On September 22, Coinbase, a US-based cryptocurrency exchange, formally announced that the Dutch central bank, De Nederlandsche Bank (DNB), had granted it registration. The regulatory clearance enables Coinbase to promote its institutional and retail cryptocurrency services in the Netherlands.
The latest regulatory license clearance coming from the tulip land allows Coinbase to expand into Europe aggressively.
As per the official record of DNB, Coinbase is one of the important international exchanges that the Dutch central bank has authorised to run cryptocurrency services along with locally run crypto companies.
The public registration of the DNB lists Coinbase Europe Limited and Coinbase Custody International as cryptocurrency service providers.
In agreement with the Anti-Terrorist Financing Act, Anti-Money Laundering (AML) and Sanctions Act, the Dutch regulator oversees Coinbase Custody and Coinbase Europe.
Coinbase stated in the declaration “Coinbase cryptocurrency services are not under the DNB’s prudential supervision.” Monetary and operational dangers connected with crypto services are not observed, “and there is no particular monetary consumer protection.”
The news was released immediately after DNB on September 16 published dedicated policy guidance on sanctions screening for cryptocurrency transactions. DNB highlighted a number of dangers related to cryptocurrencies, including their anonymity, in the Q&A document.
Dutch central bank allow Coinbase to operate in Netherlands
The entry of Coinbase into the Netherlands aligns with the firm’s rapid expansion strategies in Europe. The cryptocurrency exchange first declared its aim to broaden its presence in Europe in June, citing the effects of a significant dropdown in the cryptocurrency markets.
In July, Organismo Agenti e Mediatori, the Italian AML regulator, granted Coinbase certification as a Crypto Asset Service Provider. The exchange intends to establish in nations like Spain and France.
As per the recent post, Coinbase now serves users through specialised centres in the UK, Germany, Ireland, and over 40 other European nations.
The company said, “more registrations or licencing applications are also being processed in numerous important markets, in accordance with local laws.”
Coinbase is expanding internationally even as it deals with numerous problems. In 2022, the cryptocurrency exchange reported significant losses in consecutive two quarters, with Q2 losses totaling $1.1 billion.
Since Coinbase issued its shares on the Nasdaq Stock Exchange in April 2021, that loss of $1.1 billion was the biggest. In order to reduce costs, Coinbase laid off 18% of its workforce in June.
Authorities in the United States arrested an ex-Coinbase executive in July on allegations that the executive had engaged in insider cryptocurrency trading. Two further law cases in the United States asserted that Coinbase was making misleading cases about its strategic approaches.
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