The United States-based cryptocurrency exchange Coinbase continues its aggressive expansion in Europe, with the latest regulatory approval with the land of tulips.
Coinbase officially announced on Thursday that it has been registered with De Nederlandsche Bank (DNB), the central bank of the Netherlands. 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 major international exchanges authorized by the Dutch Central Bank to operate crypto services with small local crypto firms. Coinbase Europe Limited and Coinbase Custody International are listed as crypto service providers on the DNB public registry.
The Dutch regulator oversees Coinbase Europe and Coinbase Custody under anti-money laundering (AML), anti-terrorist financing legislation and sanctions legislation.
“Coinbase’s crypto services are not strictly regulated by DNB,” Coinbase said in its announcement. Financial and operational risks associated with crypto services are not monitored, “and there are no specific financial consumer protections.”
The news comes shortly after the DNB published a directive on its ban filtering policy for crypto transactions on September 16. In its Q&A document, DNB warned of various risks associated with cryptocurrencies, including anonymity.
Coinbase’s entry into the Netherlands comes alongside the company’s aggressive expansion plans. The crypto exchange first announced its intention to expand its reach in Europe in June, citing the impact of a significant discount on crypto markets.
In July, Coinbase received a Crypto Asset Service Provider license from Italy’s AML regulator, Organimo Agence e Mediatori. The exchange plans to register in countries such as Spain and France.
As of the last post, Coinbase now serves customers in 40 European countries through hubs set up in Ireland, the United Kingdom and Germany. “Additional registrations or license applications are in progress in several major markets, subject to local regulations,” the company said.
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Coinbase’s global expansion comes at a time when the company is facing several issues. The crypto exchange posted more than two consecutive quarters of record losses in 2022, with Q2 losses reaching $1.1 billion. It was the biggest loss since Coinbase listed its shares on the Nasdaq stock exchange in April 2021. Coinbase cut 18% of employees in June to cut costs.
In July, US authorities arrested a former Coinbase manager, alleging that the executive was involved in insider crypto trading. Two other lawsuits in the US said Coinbase was making misleading claims about its business.