EU AML Directive ‘AMLD5' Is Set For January And Dutch Crypto Startups Are Not Happy With New Laws

Two Netherland regulators, Dutch Ministry of Finance and Dutch National Bank, are pushing their own agendas on how to regulate cryptocurrencies. This new interpretation may harm crypto exchanges and developers in the country.

The European Union has a legal framework for anti-money laundering and to counter-terrorist financing. The law, called the Anti-Money Laundering Directive (AMLD), is in its fifth version. According to the European Commission, the legislation has been constantly revised to decrease the risk related to money laundering and terrorist financing.

It appears that the legislation may go through another revision in the form of several additions. A recent report by Coindesk indicates that the Dutch Ministry of Finance (FIN) and the Dutch National Bank (DNB) are working to make stringent additions to the legislation, but without disclosing the addition to the Dutch parliament, and in contravention of the review process which includes oversight by an independent government body.

The proposed additions would impact cryptocurrency firms. The Coindesk report indicates that the new rules would require that cryptocurrency firms cover their own costs of supervision and that they adhere to a registration process. Cryptocurrency firms, on the other hand, reportedly view these requirements as illegal licensing.

Daan Kleinman, the chairman of crypto regulator VBNL and crypto exchange Bitonic sent a letter to the Dutch Parliament on October 30. Reportedly, the translated letter states that they do not think it is “appropriate to start as a new sector under a supervision financing model that has been explicitly adjusted and weighted up in response to the financial crisis.” The letter further indicates that the regulations and spirits are at odds with the advice of the Council of State.

Also according to the report, pressure from critics on regulators is due to past mistakes in the financial industry, primarily those involving lax oversight that has impacted the largest bank in the Netherlands and that led to the 2008 collapse. Simon Lelieveldt, who was employed by DNB as a financial historian, shared with Coindesk in a phone interview,

“If you look at the AML directive in the Netherlands, we had this huge incident where ING was seen to be failing on anti-money laundering measures for about six years.”

“So there's a huge tendency and trend for the central bank to make up for it. The last seven years the central bank is really heavy on integrity supervision because they want to make up for the errors of the past.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lillian Peter
Lillian Peter
Lillian P has a knack for anything that teases the mind, with a keen interest in the blockchain technology, cryptocurrencies, and anything in between. Can bring to life the most difficult and boring concepts in the blockchain space. Lillian is a brilliant writer working with various publications.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

VeChain Joins China Animal Health and Food Safety Alliance (CAFA)

VeChain has joined the China Animal Health and Food Safety Alliance (CAFA) as one of its council members and will be providing them technical...

Coinbase Pro to Pass the Rising Network Fees Onto The Customer During Withdrawals

The launch of UNI, the governance token of Uniswap DEX, is having a big impact on the Ethereum network. The good thing is the price...

Homeland Security Calls On Freelancers to Design A Digital Wallet Interface; $25k to Finalists

The Science and Technology Directorate (S&T) division of the US Department of Homeland Security has allocated up to $25,000 in prizes as an...

BoE Explores Negative Rates; Bitcoin Is A ‘Must' Because Fiat is a ‘Giant Ponzi Scheme'

The Bank of England (BoE) is exploring negative interest rates now and in response Sterling weakened sharply. The pound dropped 0.7% against the dollar after...

Nexus Mutual Sees Active Cover Growing 10x, Now Token Price ‘Directly Linked to Adoption'

“DeFi is developing faster than you can say ‘protect me from the risks in DeFi’,” said Kayleigh Petrie, Director of Engagement at Nexus Mutual,...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today