Coinbase Gets Central Bank Approval For Operating In The Netherlands
The publicly listed crypto exchange, Coinbase, is continuing with its expansion efforts in Europe rather aggressively.
The latest regulatory approval for Coinbase has come from the land of the tulips, which is certainly great news for the US-based exchange.
On Thursday, an official announcement from Coinbase revealed that the crypto exchange had gotten registration from the central bank of the Netherlands, Nederlandsche Bank (DNB).
With the regulatory approval, the crypto exchange will now be able to offer its institutional and retail crypto products and services in the country.
The official DNB records revealed that Coinbase is one of the prominent international exchanges that have received regulatory approval from the Dutch central bank for offering crypto services.
Apart from that, there are some smaller crypto companies that have been approved in the Netherlands. The public register of the DNB shows Coinbase Custody International and Coinbase Europe Limited as crypto service providers.
Coinbase Custody and Coinbase Europe is under the Dutch regulator in compliance with the Sanctions Act, the Anti-Terrorist Financing Act and the Anti-Money Laundering (AML) policies.
Coinbase’s announcement dictated that the DNB would not have prudential supervision of the crypto services that are offered by the exchange.
The exchange said they do not offer any specific financial consumer protection and the regulatory authority will not monitor operational and financial risks related to crypto services.
It should be noted that this news from Coinbase comes not long after the guidance was published by the DNB on September 16th about their policy on sanctions screening related to crypto transactions.
The Q&A document that was issued by the DNB contained warnings about the different risks associated with cryptocurrencies, which include anonymity.
The entrance of the Coinbase crypto exchange in the Netherlands is in accordance with the aggressive moves that it has been making for expanding its presence in Europe.
The exchange had first announced its plan of focusing on a Europe expansion back in June, as it cited that the decline in the crypto market had had a major impact on its operations.
In July, it managed to get approval from Organismo Agenti e Mediatori, the AML regulator in Italy, for operating as a Crypto Asset Service Provider in the country.
Other countries where the exchange is planning on registering in Europe include France and Spain.
The latest post from Coinbase said that the crypto exchange is now providing its services in nearly 40 countries in Europe via its dedicated hubs established in Germany, the United Kingdom and Ireland.
The company said that more license applications and registrations are also in progress in a number of major markets, as this is what local regulations require.
This global expansion of the crypto exchange comes at a time when it is dealing with a number of challenges.
The two quarters of 2022 saw Coinbase post major losses, with losses in the last quarter climbing to $1.1 billion.
This is the biggest loss that the exchange has recorded after it listed its shares on the Nasdaq back in 2021.