Dutch central bank to regulate cryptocurrencies
Written by Hannah McGrath
The Dutch central bank has announced that it is to begin regulating cryptocurrency services from 10 January 2020.
In a statement this morning, De Nederlandsche Bank said: “In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”
It added that failure to register would result in firms no longer remaining in business.
The bank said that from the start of next year, firms offering services for the exchange between virtual money and regular money, along with crypto wallets, are expected to become subject to its integrity supervision regime.
The firms are being warned to begin their preparations for regulated activities and central bank supervision “well in advance” of the implementation date.
The bank is required to supervise crypto product businesses under the fifth European Anti-Money Laundering Directive (AMLD5), which has been implemented into Dutch law.
The statement added that cryptos are vulnerable to financial crime, hence the need to establish integrity supervision now.
Regulated firms will need to 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.