Dutch Central Bank Proposes License Requirement for Cryptocurrency Service Providers

Published at: Dec. 12, 2018

Cryptocurrency service providers will soon be required to obtain a license from the central bank of the Netherlands, major Dutch news outlet DeTelegraaf reports Dec. 11.

The article explains that the measure has been undertaken hoping that it will “prevent such cryptocurrencies being used to launder money obtained through crime or to fund terrorism.”

To qualify for a license, providers will reportedly need to know who their customers are and report unusual transactions. All of this data will be monitored by De Nederlandsche Bank, the Dutch central bank.

After the implementation in April of similar laws in Japan obliging cryptocurrency exchanges to report dubious cryptocurrency transactions, a notable increase in the number of such reports was noted this winter.

In August, an executive at the Dutch central bank stated that cryptocurrencies aren’t recognized as “real money,” but that the bank has no plans to ban them. Also in August, an advisor of the central bank claimed that Bitcoin’s (BTC) price changes coincide with Google searches for the cryptocurrency.

As Cointelegraph reported in October, the Port of Rotterdam has partnered with both a major Dutch bank and Samsung to test blockchain use for shipping in Europe’s largest port. Also in Holland, the country’s largest supermarket chain, Albert Heijn, revealed in September that it is using blockchain to make the production of its orange juice more transparent.

Tags
Law
Aml
Kyc
Related Posts
Dutch Bitcoin firm reluctantly tightens rules at central bank’s behest
Bitconic, a Netherlands-based Bitcoin (BTC) exchange, has informed its users that they now need to comply with a new verification measure in order to continue to use its services. The change comes following new requirements from the Dutch central bank, published in November 2019, which stipulate: “Crypto service providers must check whether their clients and any ultimate beneficiary owners (UBOs) are on a Dutch or European sanctions list and report any hits to DNB. Risk-based checks are not permitted [...] compliance also entails that institutions must check incoming and outgoing payment transfers.” Bitonic has informed customers that they must now, …
Bitcoin / Nov. 18, 2020
Ukraine to Block Crypto Wallets for Illicit Funds, Finance Minister Says
Ukrainian authorities will be able to “block crypto wallets” in order to seize illegally obtained assets, a notice on the country’s Ministry of Finance says. Oksana Markarova, Ukraine’s Finance Minister, reportedly said that the State Financial Monitoring Service of Ukraine (SFMS) will be the responsible authority for tracking the sources of origin of the funds on citizens’ crypto wallets. Authorities use an analytical product scanning for the crypto funds’ origins and uses As part of the regulatory policy, the SFMS will be able to not only find out the origin of crypto, but also detect how those funds have been …
Bitcoin Regulation / Jan. 24, 2020
Australian Securities Regulator Releases Cryptocurrency, Mining, ICO Guidelines
The Australian Securities and Investment Commission (ASIC) published new initial coin offering (ICO) and cryptocurrency guidelines on its official website on May 30. The regulator detailed the prerequisites that a cryptocurrency business needs to follow in order to comply with both the Australian Corporations and ASIC Acts, but did not cover regulations enforced by other national institutions. Notably, the guideline specified that if a crypto asset is a financial product, then the issuer and firms dealing with it are required to hold an Australian financial services license. The report also notes that miners will be considered part of the clearing …
Blockchain / May 30, 2019
Law Decoded: Sketching the boundaries of regulatory mandates, Oct. 25 – Nov. 1
The Securities and Exchange Commission could be emerging victorious in the race to secure the leading role in regulating stablecoins. Additional clarity on the demarcation of regulatory mandates between the SEC, Commodity Futures Trading Commission and the Treasury Department could come from the President’s Working Group for Financial Markets’ (PWG) report that was expected by the end of October but failed to arrive before the end of last week. The mandate to regulate cryptocurrency in the United States remains dispersed across a host of actors, and a single PWG report will not remedy this once and for all. Still, having …
Regulation / Nov. 1, 2021
EU Parliament can outlaw transacting with 'unhosted' wallets, crypto advocate warns
Less than a week after a potential ban on Proof-of-Work (PoW) digital assets was dropped from the EU’s prospective MiCA framework, a new threat to the crypto industry could be emerging in the European Union. This time, it is non-custodial, or unhosted, wallets that are in regulators’ crosshairs. On Thursday, March 31, the European Parliament Committee on Economic and Monetary Affairs will vote on an anti-money laundering (AML) regulatory package that seeks to revise the current Transfer of Funds Regulation (TFR) in a way that extends the requirement of financial institutions to attach information on the transacting parties to crypto …
Regulation / March 28, 2022