Why are cryptocurrency companies like Binance and Coinbase struggling? Economy

Binance and Coinbase received heavy fines from De Nederlandsche Bank (DNB) earlier this year and are also under scrutiny in the United States. Why are these cryptocurrency companies suddenly finding it so difficult?

In Nederland kregen beide bedrijven een boete van ruim 3,3 miljoen euro. In de VS vreest cryptobeurs Coinbase voor een hoge boete en kreeg Binance, ‘s werelds grootste handelsplatform voor cryptomunten, zelfs een rechtszaak aan de broek. Hoewel deze bedrijven al jaren grote spelers zijn op de cryptomarkt, kwamen ze de afgelopen tijd veel in het nieuws omdat ze zich niet aan de regels zouden houden.

Hoe dat komt is niet in één zin te vatten, zegt Peter Slagter, expert op het gebied van digitale valuta. “Hoewel deze bedrijven zowel in Nederland als de VS in de problemen zijn gekomen, zijn de situaties op het gebied van cryptobedrijven in de twee landen verschillend.”

Zo zijn cryptobedijven in Nederland sinds een paar jaar verplicht zich te registreren bij De Nederlandse Bank (DNB), die toezicht houdt op de cryptomarkt. De meeste cryptobedrijven van eigen bodem hebben dat toen netjes gedaan.

Veel grote buitenlandse bedrijven, zoals Coinbase en Binance, deden dat niet. “Terwijl je bij die partijen gewoon met iDEAL kan betalen”, vertelt Slagter. “Meer dan genoeg Nederlanders zijn actief bij Coinbase en Binance, en toch hebben zij zich niet geregistreerd. Dat is illegaal.” Daarom zijn deze bedrijven in Nederland beboet.

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The Netherlands have crypto rules, but not many

Therefore, Coinbase and Binance have been held to account because these rules were recently introduced in the Netherlands. While those regulations already carry fines, companies that trade cryptocurrencies in our country still have few obligations.

Crypto companies must register, after which the DNB monitors whether they are not guilty of money laundering or terrorist financing. Therefore, there is still no behavioral oversight of companies like Coinbase and Binance.

“It is not examined whether a company adequately explains what the risks are and whether the product offered is tailored to the customer,” says ING crypto expert Teunis Brosens. Those rules are under development and will soon be approved within the EU.

Then companies that trade cryptocurrencies will also be more restricted in the Netherlands. “These rules are there to make it safer for people to trade cryptocurrencies and investors know where they stand,” says Brosens.

According to Brosens, the fact that there are more rules now is a good thing. “But the rules have been a long time coming.” Coinbase has been around for at least ten years, Binance was founded five years ago. “Those companies have been able to keep going all along because the regulators thought cryptocurrency would stay small. Now that it looks like cryptocurrency isn’t going to disappear from the scene, it’s just doing something with it.”

The United States is also fighting cryptocurrency companies

Coinbase and Binance also struggled in the US. Although there are no rules at all in the US to control the crypto market, according to financial watchdog CFTC Chairman Rostin Behnam, the country is “on a campaign to find and stop bad behavior in the US.” the volatile and risky crypto world”.

This is because some things went wrong at companies last year, like FTX, now bankrupt. “Until now, cryptocurrency companies were looking at how far they could go, because there were no rules anyway,” says Brosens. “Now the politicians, who have not wanted to regulate for years, are also convinced that something must be done.”

However, it remains difficult to regulate crypto companies in the US. Americans disagree on who should oversee the world of cryptocurrencies. This is clear in the Netherlands: DNB does that. In the United States, there are several parties that claim they should supervise crypto companies.

Although US politicians agree that the rules are necessary, it may be some time before those rules are actually introduced.