Cryptocurrency firms in the Netherlands will have to register with local authorities by January of next year, with local authorities announcing a change in regulations on Tuesday.
The country’s central bank said that it would begin regulating the activities of companies dealing in digital assets on the 10th of January.
In a statement, De Nederlandsche Bank (DNB) said that new rules governing the nascent industry would mostly pertain to anti-money laundering and terrorist financing.
Existing rules, new regulations
In fact, the Dutch regulator is going to be regulating the cryptocurrency industry using the fifth European anti-money laundering directive – an EU-wide set of regulations that were introduced last year.
“[Crypto companies] must demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing, and that board members and other policymakers adequately manage these processes,” said the DNB in a press release.
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“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.”
News of a set of regulations governing the digital asset markets will likely be welcomed by many in the industry.
A lack of regulatory scrutiny has meant that banks, who are terrified of being slapped with massive anti-money laundering fines, are often extremely reluctant to do business with any company working in cryptocurrency.
“We are pleased to hear about the new regulations,” Sander Laugs, head of Asia-Pacific at Dutch liquidity provider Crypto2Cash, told Finance Magnates.
“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.”