US-based cryptocurrency exchange Coinbase continues its aggressive expansion in Europe, with the latest regulatory approval coming from the land of tulips.
Coinbase officially he announced received registration from De Nederlandsche Bank (DNB), the Dutch central bank, on Thursday. The regulatory approval allows Coinbase to offer its retail and institutional crypto products in the Netherlands.
According to official DNB records, Coinbase is one of the main international exchanges approved by the Dutch central bank to operate cryptocurrency services alongside smaller local crypto firms. Coinbase Europe Limited and Coinbase Custody International are said on the public register of DNB as crypto service providers.
The Dutch regulator oversees Coinbase Europe and Coinbase Custody in accordance with the Anti-Money Laundering (AML) Act, the Anti-Terrorism Financing Act and the Sanctions Act.
“Coinbase’s crypto services are not subject to prudential supervision by the DNB,” Coinbase said in an announcement. Financial and operational risks related to crypto services are not monitored “and there is no specific financial protection for the consumer”.
The news comes shortly after DNB published guidance on the crypto transaction penalty screening policy on September 16. In a Q&A document, DNB warned of various risks associated with cryptocurrencies, including anonymity.
Coinbase’s entry into the Netherlands is in line with the company’s aggressive plans to expand in Europe. The crypto exchange initially announced its intention to expand its operations in Europe in June, citing the impact of the big drop on crypto markets.
In July, Coinbase has obtained the consent of a cryptoasset service provider from the Italian AML regulator, Organismo Agenti e Mediatori. The exchange plans to register in countries such as Spain and France.
According to the latest post, Coinbase now serves customers in nearly 40 European countries through dedicated hubs in Ireland, the UK and Germany. “Additional registrations or license applications are ongoing in several major markets in accordance with local regulations,” the firm said.
Coinbase’s global expansion comes amid a company facing many challenges. Crypto exchange posted big losses in two consecutive quarters in 2022, with Q2 losses of $1.1 billion. This was the biggest loss since Coinbase listed its shares on the Nasdaq exchange in April 2021. In order for Coinbase to reduce costs cut 18% of employees in June.
In July, US authorities have detained a former Coinbase executive, alleging that the exec was involved in cryptocurrency insider trading. Two other lawsuits in the US also claimed that Coinbase was make false claims about its business practices.