New Crypto Rules Announced by DNB
Any digital currency firms that are operational in the Netherlands will be required to have regulated licenses with local authorities by January 2020. This comes after the De Nederlandsche Bank, the central financial institution for the country, announced that it’d be regulating the activities of digital asset firms. They’ll begin governing these firms on January 10th, 2019 and will be mainly looking for terrorist financing or anti-money laundering schemes.
These new rules are slated to resemble the “5th Anti-Money European Laundering Directive”, which lists a series of regulations that assist clients who have been affected by money laundering. These rules have helped thousands retrieve lost funds since it first became active in early 2018.
The De Nederlandsche Bank stated publicly, “Crypto companies must demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing and that board member and other policymakers adequately manage these processes. Once a firm is registered, and we have assessed board members and other policymakers, we will monitor that it complies with the rules on money laundering and terrorist financing.”
A Positive Change
The majority of clients has surprisingly welcomed these new set of regulations that will govern over digital asset firms and markets in the Netherlands. There has been a substantial lack of management regarding the cryptocurrency and blockchain industries, which has caused for banking institutions in the country to be terrified of anti-money laundering schemes. This has prompted many to be reluctant to work with any company in the crypto space. Subsequently, these new laws will open new gateways for just not standard clients but also banking institutions. There could be an impending change for the Netherlands Digital Market, that sees it become one of the largest in Europe. These new regulations will create a more positive trading environment for professional traders and retail clients.
The Digital Asset Firm Crypto2Cash has openly welcomed these new regulations. The chief executive officer for the company publicly stated: “We are pleased to hear about the new regulations. 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.”