New Bitcoin Licensing Systems to be Introduced for Crypto Businesses in the Netherlands

Netherland continues to make efforts to reduce anonymous crypto selling. In a piece of advice that the Netherlands Authority for the Financial Markets and De Nederlandsche Bank have handed over to Minister Hoekstra of Finance, they argue that the government must, therefore, introduce a licensing system. The minister immediately announced that he would take over the advice.

The Dutch banking institution claims that such measures will help deter money laundering related activities as well as prevent terrorists from using “crypto for funding their arms etc”. For companies to obtain this new license, they will have to report any “unusual transactions” as well as complete a series of KYC checks that ensure the identity of their clients. All of this, according to the Dutch Central Bank, has been done because of the decentralized, anonymous nature of the crypto market.

Hoekstra had asked that crypto trading platforms and wallet required a permit to operate. They insisted on regulations against speculation but since the interest in cryptos is reducing, they moved their efforts to the prevention of money laundering.

All EU Member States now have to introduce these stricter rules for the beginning of next year, and it is up to the countries themselves how exactly they are shaping them. The Dutch government opts for a system with permits. That is to say: every party that wants to be able to offer transactions from ‘ordinary' money to cryptocurrencies, and some wallet managers, must apply for a license to continue to do so.

This means that they will be tested before they are granted a license, for example to the question of whether they are able to collect all these data and to deal with them in a responsible manner. There are 30 firms that should apply for the permit or they will be punished. The exact punishment is still to be decided.

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