Dutch Financial Watchdog to Regulate Cryptocurrencies in Q1 2020
The Netherlands’ central bank, De Nederlandsche Bank (DNB), a member of the European System of Central Banks (ESCB), has announced plans to start regulating bitcoin-linked businesses from January 10, 2020, according to a Reuters report on September 3, 2019.
Dutch Authorities to Regulate Cryptos
Per sources close to the matter, the central bank of the Netherlands, De Nederlandsche Bank (DNB), a 205-year-old financial institution, has made it clear that all crypto-related firms in the region are required to come under its purview from January 10, 2020.
Specifically, the DNB has told firms offering crypto-based services, including bitcoin trading venues and exchanges, that they will be required to come under its umbrella and obtain the relevant licenses, to continue operating in the Netherlands.
“In concrete terms, businesses offering services for the exchange between cryptos and fiat currency, and crypto wallet providers, must register with De Nederlandsche Bank,”
Curbing Money Laundering
It’s worth noting that the DNB has been hatching plans to exercise its power as a member of the ESCB in regulating its cryptocurrency and blockchain ecosystem for quite some time now.
In December 2018, BTCManager informed that the DNB had buttressed the need for crypto-based companies to secure licenses from financial authorities to make it harder for bad actors to conduct illicit acts such as money laundering via these firms.
At the time, he DNB stated categorically that crypto exchanges, as well as other firms that facilitate bitcoin transactions, must carry out extensive know-your-customer (KYC) and anti-money-laundering (AML) checks to be eligible for a license.
Of a truth, Satoshi Nakamoto created Bitcoin to function as an entirely peer-to-peer (P2P) decentralized monetary system devoid of any form of government interference.
However, the activities of rogue actors who often take advantage of the privacy-centric qualities of some digital currencies to cover their tracks has made it quite critical for financial authorities to put in place amenable regulations to govern the crypto industry.
In August, Switzerland’s Financial Market Supervisory Authority (FINMA) released fresh KYC/AML guidelines designed in line with the requirements of the Financial Action Task Force (FATF), to govern crypto and blockchain-based firms.
Similarly, BTCManager informed on August 20, 2019, that the Association of Cryptocurrency Enterprises and Start-ups, Singapore (ACCESS) had collaborated with the Monetary Authority of Singapore (MAS) to implement a new ‘Code of Practice’ for crypto market participants in the region.