Dutch AML laws could block foreign crypto companies

Dutch AML laws could block foreign crypto companies - Wopke Hoekstra

La De Nederlandsche Bank announced the new regulation concerning the cryptocurrency sector, which provides in particular that all companies in the Netherlands operating in the sector will be obliged to register with the same DNB if they wish to continue operating within a framework of absolute legality. A decision that however entails contraindications not insignificant with regard to all those companies operating in the sector which they do not have offices within the country.

The position taken by the Dutch central bank

In enacting the new regulation, the Dutch central bank has decided to transfer the contents of the AMLD 5 into it, which provides for the fight against money laundering with the aim of suppressing cryptocurrency theft and illegal withdrawal of funds from the national territory. Starting from 10 January 2020, all companies or operators that offer services related to cryptocurrencies must register with DNB if they wish to continue operating. The same representatives of the Dutch central bank then stated that any companies that do not comply with the guidelines will be considered as unauthorized entities and not fit accordingly to provide financial services in the country.

An obstacle for foreign companies?

To start the alarm was a statement released by the spokesperson of the DNB, Tobias Oudejans, which revealed that the new legislation issued by the Dutch House of Representatives will prevent foreign companies from offering their services within the country. Foreign companies are defined as all those registered outside the European Economic Area (EEA), ie the one established by the Member States of the European Union (EU). However, Oudejans himself has not been able to clarify whether the cryptographic companies in question will be able to access the Netherlands market if they open their offices in the Netherlands or in Europe.

The satisfaction of Dutch companies 

How was the adoption of the new legislation by Dutch cryptographic companies accepted? Many of them expressed their own liking for the new regulation, motivating it with the possibility of operate within a framework of clear rules and therefore able to ensure stability.
A position expressed in particular by PJ Datemafounder of Crypto2Cash, who in an interview given to CoinDesk stated that the standard introduced by DNB will have the effect of pushing companies that are not able to respect it out of the market. Adding then how the new regulation will help the sector in its maturation phase and the Dutch companies to reject the attack of the competition coming in particular from Germany and France, but not only.

The new regulation meets precise requirements

In the month of january, Wopke Hoekstra, Minister of Finance, had received the results of a advice asked to the institution responsible for the surveillance of financial markets and to the DNB, precisely on the subject linked to the introduction of a licensing system for the digital assets sector. In the month of July, AtoZMarkets he then reported that the Dutch ministers had urged the government to regulate cryptocurrencies and some cash payments, justifying the request with concerns about money laundering attached to them. The new regulation must therefore be considered the response to these needs