The Dutch Central Bank takes a tougher stance on the cryptocurrency industry and cites new EU money laundering laws (1966002) From January 10, 2020, companies or individuals involved in the conversion of crypto into Fiat currencies or offers crypto deposit services will be required to self-register with De Nederlandsche Bank (DNB), DNB announced on Tuesday.
The order includes companies based outside the Netherlands serving Dutch nationals, also via the Internet.
"It is irrelevant if they are established in the Netherlands," said a representative from DNB in a question and answer, adding:
"Also suppliers that offer such services from another EU member state … for example, via a website, must register regardless of whether the provider is already registered in that Member State. "
DNB says the audit is intended to be in compliance with the fifth EU Money Laundering Directive (AMLD 5), which also will come into force on January 1
The first registration period will last six months after the January date, and companies that fail to submit a registration in advance may be forced to close when the rules are in effect, DNB said.
"During these six months, therefore, you must already meet the requirements of the law," DNB said. "If you did not submit a request for registration at the time of entry into force of the law, you must stop the service."
significant shareholders and directors delegates could also prove their AML ability for a DNB assessment.
Under AMLD 5, member states must issue cryptocurrency that follows the policy before January 10. Interpreting what regulations must be considered or created falls at the discretion of each state, the release says.
In the Netherlands DNB will take into account previous actions of each company in addition to "the specific function, nature, size, complexity and risk profile of the company, and the composition and function of the collective."
Earlier this spring, the Dutch Financial Criminal Investigative Service dropped the coin mixer Bestmixer.io, and seized several servers in the Netherlands and Luxembourg.
DNB did not answer questions within press time.
Dutch Central Bank via Shutterstock