Coinbase Exchange enters the Netherlands with central bank green light
The United States-based Cryptocurrency Exchange platform Coinbase continues its aggressive growth and expansion in Europe, with the latest regulatory green light coming from the land of tulips.
Coinbase Exchange officially announced on 22nd August that it had received registration from the Central bank of Netherlands, De Nederlandsche Bank (DNB). The approval from the regulatory body allows Coinbase exchange to offer its retail and institutional cryptocurrency products in the Netherlands.
According to the official DNB records, Coinbase exchange is one of the major international cryptocurrency exchanges approved by the Dutch central bank to operate crypto services alongside smaller local cryptocurrency firms. Coinbase exchange Europe Limited and Coinbase exchange Custody International are listed on DNB is public register as cryptocurrency service providers.
Also Read: Coinbase Tested Group To Speculate On Crypto
The Dutch regulatory body is supervising Coinbase exchange Europe and Coinbase exchange Custody in compliance with the Anti-Money Laundering (AML) and Anti-Terrorist Financing Act and the Sanctions Act.
“The cryptocurrency services of Coinbase exchange are not subject to prudential supervision by DNB,” Coinbase exchange said in the announcement. Financial and operational risks related to cryptocurrency services are not monitored, "and there is no specific financial consumer protection.”
The announcement comes shortly after DNB published guidance dedicated to policy on sanctions screening for cryptocurrency transactions on Sept. 16. In the Q&A document, DNB warned about multiple risks associated with crypto, including anonymity.
Also Read: Coinbase Exchange Japan Almost Doubles The Number Of Tokens It Lists
Coinbase is entry into the Netherlands comes in line with the company is aggressive growth plans in Europe region. The Cryptocurrency Exchange initially announced its intention to expand its reach in Europe in June, citing the impact of a major decline on cryptocurrency markets.
In July, Coinbase exchange obtained the Cryptocurrency Asset Service Provider approval from the Italian AML regulator, Organismo Agentie Mediatori. The exchange platform is planning to register in more European countries like Spain and France.
Also Read: Coinbase Exchange Could Earn $1.2B Next Year From Higher Interest Rates, According To JPMorgan Note
According to the latest post, Coinbase Exchange now serves customers across almost 40 European countries through dedicated hubs in Ireland, the United Kingdom and Germany. “Additional registrations or license applications are in progress in several major and emerging crypto markets, in compliance with local regulations,” the exchange platform said.
Coinbase is global expansion comes amid the company facing multiple issues. The cryptocurrency exchange platform posted major losses over two consecutive quarters in 2022, with Q2 losses netting USD 1.1 billion. That was the company is largest loss since Coinbase exchange listed its shares on the NASDAQ Stock Exchange in April 2021. To cut its fixed expenses, Coinbase laid off 18% of its total workforce in June.
In July, United States authorities arrested a former Coinbase exchange manager, alleging that the executive was involved in an insider cryptocurrency trading scheme. Another two lawsuits in the United States also claimed that Coinbase exchange was making deceptive claims about its business practices.
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