July 2, 2019 | AtoZ Markets - Dutch Ministers called the Parliament for regulating cryptocurrency and to put restrictions on certain financial operations to prevent money laundering operations.
The Netherlands’ authorities call on action against crypto adoption in money laundering
It is worth to mention, although the Dutch authorities do not recognize crypto as a legal currency, last year a local court recognized Bitcoin to be a legitimate “transferable value” in a penalty payment case.
The Dutch Minister of Finance Wopke Hoekstra and Minister of Justice and Security Ferdinand Grapperhaus sent the “approach to money laundering” proposal to the parliament on July 1. In their statement, the officials of the Netherlands said that the government should ban cash payments over 3,000 euros, ban 500 euro banknotes and regulate crypto as these instruments can purportedly facilitate money laundering.
The Dutch Ministers also requested parliament to strengthen the enforcement capacity of financial regulators and relevant authorities and control groups. The Netherlands will also advocate the creation of a European Union regulator to combat money laundering across the border.
In January, Minister of Finance Wopke Hoekstra received an official recommendation from the Netherlands Financial Markets Authority and the central bank of De Nederlandsche Bank that the crypto-services system should be introduced into the licensing system.
European national authorities call on the adoption of crypto regulations
France is also preparing to push the EU states to issue their cryptocurrency regulations. At an event on blockchain technology in Paris in April, the French Finance Minister Bruno Le Maire announced that parliament had just approved a new financial bill, which also included regulating some parts of the industry of cryptocurrency.
In June 2019, Francois Villeroy de Galhau, the Governor of Bank of France revealed that France plans to form a new task force from G7 member countries to examine regulatory issues related to cryptos. Back then, the crypto community suggested, that the main reason pushing France into such initiative was growing concerns around soon to be launched Facebook Libra stablecoin.
The same month the G20 group of nations reaffirmed it will align with standards for anti-money laundering (AML) and countering the funding of terrorism (CTF) set to be finalized by the Financial Action Task Force (FATF). The FATF standards are expected to set strict operating procedures for crypto exchanges, going beyond the basic “know your customer” (KYC) rules that most major exchanges usually apply.
Crypto usage in illicit financial activity
Atoz Markets recently covered a story about six people being arrested by the European Union Agency for Law Enforcement Cooperation (Europol) against the background of a $27 million stealth in a cryptocurrency hack. The attackers were involved in so-called "typosquatting”, which is identified as a fraudulent method of stealing credentials of users.
The Europol conducted the arrest in coordination with the United Kingdom’s South West Regional Cyber Crime Unit, the Dutch police, Eurojust, and the U.K.’s National Crime Agency (NCA).
Europol press release mentioned that the EU agency believes that the hackers were able to use “typosquatting” to steal login details, which enabled them to gain access to their victims’ crypto wallets.
The hackers were believed to have used this scheme to steal at least 4,000 bitcoin (BTC) from many users in 12 different countries.
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