Dutch Central Bank Orders Crypto “vulnerable to financial crime” Companies to Register
- De Nederlandsche Bank to regulate crypto companies starting from January 10, 2020
- The move came under the fifth European anti-money laundering directive
Firms offering services for the exchange of digital currency and regular money along with crypto wallet providers have become subject to the central bank’s “integrity supervision” and forced to register with the bank 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,”
reads the statement.
Not just the company, their board members and shareholders need to be assessed as well.
These members, the bank says must demonstrate that their processes are “effectively” designed to prevent terrorist financing and money laundering. Also, that policymakers and board members are adequately managing these processes.
Once the company is registered and the central bank has accessed board members, the bank will monitor that it complies with the rules.
The central bank is advising these firms to start their preparations well in advance and get in touch with them to discuss the supervision and help the bank get an idea of how many firms will actually come under their supervision.
The bank further says that will continue to add more information in the coming weeks and months regarding integrity supervision of crypto operators.