Dutch Central Bank will regulate crypto exchanges and certain cash payments come 2020 due to money laundering concerns.
September 3, 2019 | AtoZ Markets - The Dutch Central Bank has today announced that it will regulate all companies that provide customers with services in the crypto industry in The Netherlands starting January 10th, 2020.
The central bank imposes the regulations on companies that change between crypto and fiat or offer crypto wallets. The regulations follow European law.
Dutch Central Bank will not allow unregistered crypto exchanges to operate
Dutch crypto firms are required to register with the De Nederlandsche Bank (DNB). The bank’s official statement reportedly reads:
“In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”
The statement also added that board members need to give proof that the crypto firm is well equipped to tackle anti-money laundering and the financing of terrorism. Even after the initial verification by the DNB, the banking organization will also monitor crypto exchanges. This means that the Dutch Central Bank will not allow unregistered crypto exchanges to offer cryptocurrencies or wallet services.
Furthermore, the central bank and the country's financial watchdog AFM have warned people for integrity issues related to crypto. These two organizations started talking about a national crypto regulation in January 2019. The central bank itself wanted to issue crypto licenses even before 2020 comes.
European crypto regulations
The new rules in the Netherlands are part of an EU wide operation as they want to get more insight into crypto traffic.
Whilst there are several active cryptocurrency exchanges in the Netherlands, it is noteworthy that the country does not recognize cryptocurrency as legal tender. However, as AtoZMarkets reported back in 2018, a Dutch court ruled that Bitcoin (BTC) was a legitimate “transferable value” in a penalty payment case.
The Dutch are very much aware that banning crypto has no importance, hence, they have chosen to take the path of regulation. Income from crypto is currently taxed under box 3 and this means that 30.000 EUR of your crypto income is tax-free, and above that, you will be required to pay scaled taxes based on your income.
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