2020 Deadline for Cryptocurrency Firms Operating in Netherlands to Register with the Central Bank
Dutch cryptocurrency will be required to register and comply with the rules set by the De Nederlandsche Bank according to an official announcement from the financial authority.
By January 10 2020, every cryptocurrency firm operating in Netherlands should be registered by the central bank. The announcement reads,
“In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”
“Crypto is venerable to crime”
Cryptocurrencies have become a sensitive topic in the country accused of harboring the rampant cases of money laundering, tax evasion and scams in the industry.
As we reported earlier in the year, the Dutch central bank released a statement dismissing the technology after a three year test. The central bank claims its distributed ledger technology (DLT) did not perform as expected by its team and has since been keen on regulating and supervising the industry.
Tough supervision and regulation of the cryptocurrency industry
The cryptocurrency industry is prone to crime enhancement and “venerable to be used for illicit trades according to the bank hence the increased regulation targeted to the industry. The report reads,
“We are required to start supervising these businesses under the fifth European anti-money laundering directive (AMLD5) and its implementation in Dutch law. Cryptos are vulnerable to financial crime, which is why it is important to set up integrity supervision now.”
The central bank is asking crypto wallets and exchanges operating in Netherlands to inform them of their presence to make the process of supervision and registration easier. Furthermore, the central bank will be monitoring the board members and selected shareholders of the businesses to ensure they follow the rule of law. The crypto firms will also be required to
“demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing.”
A five page document released by the financial ministers in the country, tasked the central bank to counter the spreading use of cryptocurrencies in the country as the government tries to tackle the rampant money laundering issues.