Dutch Central Bank Imposes Stringent Measures On New Crypto Startups

Dutch Central Bank Imposes Stringent Measures On New Crypto Startups

The Dutch Central Bank is hammering on crypto-related ventures in the video to inquire why their customers are purchasing Bitcoin.

Netherlands-based cryptocurrency companies have been imposed upon a new set of requirements by the Dutch Central Bank(DNB). This is specifically targeted at companies that want to register officially. An announcement that was published by crypto exchange giants, Bitconic, the DNB also, amongst other things, implemented its Sanction Act, which has forced local firms to monitor their customers’ transactions. According to the act, the crypto firms need to watch things like withdrawals and even go as far as getting screenshots of their customer’s crypto wallet.

Exchanges ordered to verify their customer’s identity

According to the sanction act, Bitcoin exchanges across the Netherlands must make sure that their clients prove that they are the ones that control their Wallet, a directive that is not in place in other European countries. Despite being against the move, the exchanges are required to dig into why their clients are purchasing the digital asset, what they want to do with it, and the type of Wallet they use.

In addition to the DNB’s previous requirements, Bitonic is now obliged to verify that every of its customer is indeed the legitimate owner of their Wallet address by requesting an obligatory screenshot of their Wallet or a signed message of confirmation. According to its official statement, Bitonic said that they had urged the DNB to drop this directive as the measures are against their work ethic.

“We have told the DNB that these requirements should be abolished simply because it is not appropriate and effective. Unfortunately, we could not get them to consider that, and they have chosen to go ahead with the directive. Regarding the European Union, only the Netherlands has this kind of directive in place,” Bitonic noted.  Bitcoin entrepreneur and executive editor of CoinPrices.io Matt Odell has labeled the latest requirement as an obvious precursor to proper self custody bans and has implored Bitcoiners to stack hard while they can.

New requirements were communicated months before enforcement

In a post published by The Exchange on November 3 stating the new requirements by the DNB, it affirmed the extent to how strict the new requirements are and that no registration of new Crypto exchanges would be made if the conditions were not met. In a Webinar in September, the DNB reportedly informed Dutch crypto companies of its new rules.

Bitonic also argued that this requirement was communicated after four months of the six months transition period had passed. Even in their opinion, there was no legal basis for the requirements. The exchange also added that other DNB-Supervised financial institutions such as Banks were not subjected to similar requirements.