Dutch Parliament May Rule On Legislation To Ban International Crypto Firms Operating In Netherlands
The recently reported registry mandate for local crypto companies in the Netherlands will also impact the international companies in the jurisdiction. While all local financial companies (including crypto firms) are set to be registered with the Dutch National Bank (DNB) by January 10, all international cryptocurrency companies will not be able to operate their business in the country.
A Bill to Regulate or Kill Crypto?
The Dutch House of Representatives have the new financial bill tabled before them to regulate crypto firms operating in the country. This comes in light of excessive money laundering and scams claims from regulators such as the DNB. Furthermore, according to DNB spokesperson, Tobias Oudejans, the legislation is also targeting international cryptocurrency firms in the country.
While the law was previously thought to affect the Dutch crypto firms only, foreign companies will be the heaviest hit as the bill kills business within the country. The alternative will be to open a Dutch branch and accept the National Banks regulation on the industry.
The legislation, which follows the fifth EU Anti-Money Laundering Directive (AMLD 5) is still in the representatives’ house and is expected to be passed in the coming weeks.
Yes to Regulation!
While many international firms will be looking elsewhere to place their businesses, Dutch cryptocurrency firms are happy with the recent regulations put in place. Despite the regulations stifling the growth of crypto in the country, having a set regulation is better than having no regulation at all said the founder of Dutch crypto firm, Crypto2Cash, PJ Datema. He further commented,
“It’s good they are taking action. If we want the market to mature and the participants to evolve… you want anti-money laundering (AML) and proper know your customer (KYC).”
Earlier in the year Dutch police carried out a raid on Bitcoin scammers who stole $27 million USD from users in July. Following the increasing cases of scams and money laundering using cryptocurrencies, the Dutch central bank has given an ultimatum on 10 Jan 2020 for firms to register with them due to their
“vulnerability to financial crime”.