Cryptocurrency exchanges that offer conversion of crypto to fiat currencies or crypto deposit services to users in the Netherlands, will soon come under a mandate to register with the country’s central bank.
De Nederlandsche Bank (DNB), the Dutch Central Bank announced the development on Tuesday, noting that after Jan 10, 2020, affected crypto exchanges must self-register with the banking authority.
The new registration requirement as per the DNB update forms a part of the country’s effort to comply with the fifth EU Anti-Money Laundering Directive (AMLD 5) which is also expected to become legally binding on the same date.
An unnamed official of the DNB was also on hand to explain in a Q&A session, that even exchanges that are not operating from the Netherlands must abide by the new registration requirement which allows the DNB to supervise the activities of such business.
“It is irrelevant whether they are established in the Netherlands,” the official said, before mentioning specifically that even “providers 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.”
Further, the official mentioned that affected exchanges will after the Jan 10, 2020 date have an extra six months to reach the needed regulatory compliance which involves passing an AML assessment by the DNB.
“During these six months, you must therefore already comply with the requirements of the law.[..]. If at the time the law comes into force, you have not submitted a request for registration, you must stop your service,” the announcement read.
Meanwhile, the latest move by the DNB comes off the back of global efforts to ensure regulatory oversight on the use of cryptocurrencies.
In July, Stmarket.co reported the introduction of similar rules in Germany where crypto firms will from next year be required to hold a license issued by the country’s financial markets regulator.