Dutch central bank tightens regulatory control of crypto trading

Dutch central bank tightens regulatory control of crypto trading

Changes in the regulatory regime of Netherlands are upcoming that will affect local cryptocurrency firms, most importantly they will have to register with authorities and begin operating under the scrutiny of the Central Bank.

The new rules that will be set in place will be mostly concerned with anti-money laundering and terrorist financing according to a statement by the De Nederlandsche Bank (DNB). The press release of the DBN reads that Crypto firms “must demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing, and that board members and other policymakers adequately manage these processes.”

The Dutch authorities will approach this matter using the European anti-money laundering directive which is an EU-wide set of regulations that were introduced last year.

Most importanly, the firms will have to demonstrate that they are effectively preventing money laundering and terrorist financing in their dealing and that such processes are not overlooked by the board members and policymakers.

This news of new regulation has been lauded by many in the industry due to the unwanted uncertainty that the lack of regulatory scrutiny has caused in the business. In fact, due to such uncertainty many banks still remain reluctant to do business with crypto firms because of fears they might face undesirable legal consequences.

The head of Asia-Pacific at Dutch liquidity provider Crypto2Cash Sander Laugs even says in an interview with the Finance magnates the following: “Since inception, Crypto2Cash has been trying to consistently be ahead of the curve in terms of AML, KYC and KYT. We embrace new regulations and believe it is an excellent move by the Dutch Central Bank in creating a transparent, regulated environment in the crypto space – which is only set to grow.”

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