Regulations | Dutch central bank urges cryptocurrency-related companies to complete registration by 2020

According to CCN's September 4 report, the Dutch central bank (DNB) has lost patience with related companies in the field of cryptocurrency. It reminds these companies that registration must be completed by 2020, when they will become the object of "integrity supervision."

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On Tuesday, the Dutch central bank announced that it was required to begin regulation of cryptocurrency-related businesses under the European Anti-Money Laundering Directive (AMLD5).

Although cryptocurrencies, especially bitcoin, are slowly approaching mainstream applications, the Dutch central bank is still concerned about it, especially as encryption technology is vulnerable to financial crime.

The reason why the Dutch central bank's move is disturbing the current cryptocurrency company is mainly because it is impossible for the cryptocurrency institution to conduct any business in the Netherlands without government supervision.

Dutch central bank takes action against cryptocurrency

The statement issued by the Dutch central bank stated:

Companies offering virtual currency (cryptocurrency) and common currency trading services, as well as cryptocurrency wallet providers, should contact the Dutch central bank. At the same time, board members and shareholders of these companies may also be assessed by the central bank.

In addition, companies that comply with regulations may be highly supervised by the government, and all companies must register by January 10, 2020.

The Dutch central bank said bluntly:

Companies that are not registered are not allowed to continue to offer cryptocurrency trading services and wallet products.

At the same time, it also warned:

If these companies contact us now, we will be able to reach them more easily in the future and know how many companies will be under our supervision. They must demonstrate that the processes they involve are designed to effectively prevent money laundering and terrorist financing, and that the company's board members and other decision makers must also manage these processes adequately.

The Dutch central bank said it was done

The Dutch central bank last raised this idea at the end of 2018. At the time, CCN had reported that the Dutch central bank wanted to regulate the cryptocurrency company by requiring it to obtain an operating license.

According to the Dutch central bank, this provision is necessary because "the decentralization and anonymity of the cryptocurrency market make it very easy to be the target of money launderers."

This time, the Dutch central bank will use instructions or proposals as a support for its actions. Although the directive has not yet been implemented in Dutch law, it is still doing so.

According to AMLD5 and its implementation in Dutch law, we must begin to monitor cryptocurrency-related businesses. Encrypted currencies are vulnerable to financial crimes, so establishing a credible regulatory mechanism is particularly important.

According to the bank, the proposal is currently being submitted to the Dutch House of Representatives.

The Dutch central bank said at the end that it looked forward to discussing its regulatory issues with the affected cryptocurrency companies.

The Dutch central bank’s approach seems to have increased the burden on cryptocurrency companies, but it says:

We look forward to discussing regulation with them and what guidance we can provide on compliance.