Coinbase with a license in Italy, Binance with a penalty in the Netherlands

In recent days, a lot is happening not only on cryptocurrency market. While tokens have spectacularly begun to recover from recent declines, cryptocurrency exchanges have to contend with procedural complexities. As usual, there is a race with supervisors in this field - some people manage to meet all the requirements before imposing a penalty, others do not, but they do not care too much, because it is more profitable to pay even millions of penalties than to delay entering a given market. 

An example of an exchange that prefers to operate on another foreign market before all procedures are completed is Binance. The world's largest cryptocurrency exchange will simply earn more in this period, before fossilized regulators can articulate their concerns.

Therefore, it is not surprising that the Dutch Central Bank has punished cryptocurrency exchange Binance will be fined $ 3,37 million for offering its services to citizens of this country, even though registration procedures are still pending. De Nederlandsche Bank (DNB) requires financial institutions to register in accordance with the Act on the prevention of money laundering and terrorist financing. Originally, Binance was supposed to pay a penalty of 2 million euros, but the bank decided that it needed to be increased, because it is serving in the Netherlands "A very large number of customers".

Binance officially registered in France and Abu Dhabi

Of course, Binance is appealing the penalty because the registration application has been submitted, but is still pending by the central bank. 

However, it was much faster in France, where the stock exchange has already been officially registered. Binance also conducts large-scale efforts to legalize operations in all major countries. Recently, she obtained a license, incl. in Italy, Dubai or Bahrain. It already has it in many European countries.

Ripple will spend $ 100 million on lawyers

He must also take into account considerable costs Ripple cryptocurrency. Project CEO Brad Garlinghouse has just admitted that a dispute with US Securities and Exchange Commission (SEC) will cost them over $ 100 million. Interestingly, he was not talking about the fine, but about the legal fees that are already charged at this stage.

Brad Garlinghouse emphasizes that in his opinion it is a deliberate SEC action. The US Securities and Exchange Commission has such a tactic, in his opinion, because it realizes that the enormous legal costs will make most companies prefer to sign a settlement to avoid them. But he is adamant because he wants to prove that he is right.

- Facts and law are not the most important here. Once all of this is settled, we'll be spending over $ 100 million on legal fees battling the SEC. But this fight isn't just for Ripple, it's for the entire cryptocurrency industry - points out Brad Garlinghouse.

For so far he has been winning little. The judge accused the SEC, inter alia, of hypocrisy in arguing and rejected the request to classify part of the trial.

The US Securities and Exchange Commission (SEC) accuses Ripple of violating securities laws because of the company's XRP tokens. 

Coinbase with approval in Italy

Meanwhile, one of Binance's biggest competitors - American Coinbase - already has regulatory approval from Organismo Agenti e Mediatori (OAM) to operate in Italy. It is the first cryptocurrency company to meet the new requirements of Italian regulators.

Foreign companies wishing to legally operate in Italy must implement strict anti-money laundering measures. 

- Obtaining this regulatory approval is a testament to our close cooperation and positive working relationship with Italian financial regulators - emphasizes Nana Murugesan, Coinbase's vice president of international development and business.

So Coinbase is following the blow and is already processing applications in other countries. All this to stay a bit ahead of reality and not to risk penalties. It already has operating licenses in Germany, Ireland, Italy and Great Britain. Work is underway to obtain consents in Spain, France, Switzerland and the Netherlands.