Netherlands AML laws which will also enter into force next year may block out Cryptocurrency firms without offices in the country.
September 11, 2019, | AtoZ Markets - The Dutch central bank has recently taken a firmer stance on the issue of cryptocurrency regulation, citing the new European Union fifth anti-money laundering laws (AMLD 5).
Netherlands might block cryptocurrency companies abroad
Starting January 10, 2020, domestic companies or individuals offering crypto-related services must register with De Nederlandsche Bank (DNB) independently if they wish to continue to operate – representatives of the Central Bank said.
But that is not all. Today, DNB spokesperson Tobias Oudejans revealed that the current legislation before the Dutch House of Representatives will stop foreign entities from offering their services within the country.
Foreign entities include all firms registered outside the European Economic Area (EEA), a block which consists of the Member States of the European Union (EU). Oudejans, however, did not clarify if foreign crypto companies will gain access to the market if they open their offices within the Netherlands or Europe. He further added that the legislation, which addresses the EU's AMLD 5 is still under consideration.
Crypto service providers pleased with Netherlands AML laws
Many cryptocurrency firms in The Netherlands have welcome the idea of regulation because it means they can operate within clear boundaries and rules.
For example, the founder of the Crypto2Cash, PJ Datema told CoinDesk that bad actors could not live up to the standard that DNB is bringing forward. What is more, DNB is helping the market to mature as they are making their exit. According to Datema, this is a significant step that DNB has taken to block out competitors in Germany, France, and elsewhere.
As AtoZMarkets reported in July, Dutch ministers had urged the country’s government to regulate cryptocurrencies and certain cash payments due to money laundering concerns.
In January, Dutch Minister of Finance, Wopke Hoekstra, received official advice from the Netherlands’ Authority for the Financial Markets and De Nederlandsche Bank that a licensing system should be introduced for cryptocurrency services.
It is worthy of note that cryptocurrency is not recognized as legal tender in The Netherlands, nevertheless, a Dutch court ruled in 2018 that Bitcoin (BTC) was a legitimate “transferable value” in a penalty payment case.
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