The Netherlands central bank, De Nederlandsche Bank, announced Tuesday that it will start regulating cryptocurrency services on January 10, 2020, Reuters reports. According to the central bank’s statement announcing the news, digital asset companies in the Netherlands will need to register to do business in the country:
“In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”
Dutch officials have been calling for regulation of the digital asset industry for some time, citing concerns that unregulated cryptocurrencies could facilitate money laundering, terror financing, and other illicit activities. Earlier this year, the central bank and Dutch financial authority had recommended that the government adopt a registration and licensing system for the industry.
Dutch regulators plan to rely on a set of EU regulations introduced in 2018, the fifth European anti-money laundering directive. The central bank’s statement outlined its expectations for the new regulatory regime:
“In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers must register with De Nederlandsche Bank (DNB). Also, their board members and some shareholders (qualifying holdings) will need to be assessed. They 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.
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. Firms that do not register will no longer be allowed to provide crypto exchange services and wallets.”