Dutch Central Bank Gives Crypto Companies 2 Week To Comply with AML; Register or Shut Down
The De Nederlandsche Bank (DNB), the central bank of the Netherlands, has given a two-week ultimatum to crypto companies operating in the country to register with regulators, or if they fail to do so, they would be required to seize their operations.
The monetary authority announced on Monday that the last date of registration would be May 18th in a press release.
The move by the central bank comes in the light of enhanced “amended” Fourth Anti-Money Laundering Directive (AMLD4) laws on April 21 which was passed by the Dutch parliament last month in compliance with the European AML directives and new standards set by the Financial Action Task Force (FATF).
The new amendments would require any firm that offers crypto-to-fiat conversion, crypto custodial services to register with the regulators before the deadline or they would be served with cease-and-desist orders. Only crypto-to-crypto firms are exempted from the central bank registration ultimatum.
Crypto Firms Criticizes Heavy Regulatory Intervention
While the central banks are pacing things up to implement the new amended AMLD4, the crypto companies were not very happy about the implementation.
Many of them believe the newly amended law is a burden on them and they believe that the smaller firms would have to bear the brunt of the tighter regulatory stance and many of them might have to even shut their operations or look to move it elsewhere.
There was also a lot of questions on why the central bank and the ministry of finance decided to amend the AMLD4 when there is a new AMLD5 directive put out by the European Union. There was no clarification or response from the central bank on the query either.
A similar call of action notice was formalized by the central bank in September 2019, right after the EU passed the AMLD5 directives, but before the Dutch parliament took cognizance of the new changes.
The European Union gave time until Jan 10th for its members to implement the new directives. However, the Dutch government failed to address the new directives until April 21 which might be one of the reasons behind the current hurried two-week call of action notice.