The Dutch National Bank (DNB) imposed a fine of 2.25 million euros ($2.6 million) on crypto exchange OKX for operating in the country without registering with the regulator.
According to a Wednesday DNB announcement, the fine pertains to a period from July 2023 to August 2024, before the introduction of the European Union’s Markets in Crypto-Assets (MiCA) regime. Local regulators began requiring crypto firms to register with the local central bank for Anti-Money Laundering (AML) purposes in early 2020.
An OKX spokesperson told Cointelegraph that the company is “pleased to have resolved this matter” and “maintains that OKX did not actively target Dutch customers during the period in question.” The representative also highlighted that the fine “does not apply to, nor concern, our MiCAR-licensed entity, Okcoin Europe,” and that the Netherlands remains an important market for the firm.
Similar fines were previously issued against some of OKX’s competitors. In March of last year, reports revealed that the DNB had fined Crypto.com for operating without registration for more than two years.
In 2022, DNB fined the world’s top crypto exchange, Binance, for the same reason, and it later left the market. In 2023, Coinbase was also hit with a fine for the same reason.
Related: OKX CEO apologizes after ‘false positives’ lock users out of accounts
Not the sole fine for OKX
OKX, holding a MiCA license, won’t be leaving the Netherlands due to the fine, as it is now legally authorized to operate in the country. Still, it is not the only jurisdiction where the exchange has found itself in trouble in recent times.
OKX was under regulatory scrutiny in Europe in early April after the Maltese authorities issued a fine for violating local AML rules. The 1.1 million euros ($1.2 million) fine came as local authorities noted that they “could not ignore” the exchange’s compliance failures from 2023, “some of which were deemed to be serious and systematic.”
OKX was also among the 10 crypto exchanges that the Philippines Securities and Exchange Commission warned against for operating without the required authorization early last month. In its alert, the regulator warned that the platforms continued to offer or promote crypto services to Philippine users despite lacking the necessary registration.
Related: Bybit, OKX expand crypto services in Europe under MiCA
The Netherlands hosts ever more crypto innovation
The Netherlands has recently seen new crypto initiatives announced with higher frequency. Last month, Dutch cryptocurrency service provider Amdax said it was preparing to launch a Bitcoin treasury company on Amsterdam’s Euronext stock exchange. The company announced that multiple investors had committed about $23.3 million in an initial financing round for Amdax’s Bitcoin.
The Dutch Authority for Financial Markets also granted a MiCA license to local crypto exchange Bitvavo at the end of June.
The government asked last October for public input on proposed laws that would require crypto service providers, such as exchanges, to collect and share user data with the local tax authorities.
The rapidly evolving environment appears to be attracting corporate attention. Last September, major crypto exchange Kraken announced the closing of its Coin Meester acquisition, one of the Netherlands’ oldest registered crypto broker firms, to expand its Dutch presence.
Magazine: The one thing these 6 global crypto hubs all have in common…
