The Central Bank of the Netherlands said that all cryptocurrency companies in the country must register with the regulator by may 18 or stop their activities.
The national Bank of the Netherlands (DNB) aims to quickly ensure compliance with anti-money laundering laws that were passed by the country’s Parliament last month in accordance with FATF directives and European Union standards.
After the adoption of the new laws, all firms that convert crypto assets to and from Fiat currencies, as well as providing custodial services for cryptocurrencies, must register with the DNB by may 18. At the same time, companies that exchange exclusively between cryptocurrencies are not subject to registration.
Dutch cryptocurrency companies have strongly criticized the new regulation, calling it ” burdensome for the industry as a whole.” According to industry representatives, DNB and the Ministry of Finance restrict the activities of small companies, forcing them to stop working.
As DNB stated in a press release, firms that do not register with the regulator until may 18, “should cease their activities.” Otherwise, they will face fines and “other enforcement actions”. The statement says that the registration application is sufficient to meet the requirements of the Central Bank by may 18.
The latest DNB statement formalizes a similar registration notice issued in September 2019. As part of the Fifth European Union anti-money laundering Directive (AMLD5), EU member States must implement the directives in their legislation by January 10, which the DNB agreed to in September.
In addition, in April, it was reported that the Netherlands will introduce fees for cryptocurrency companies that exceed those required under AMLD5, and a few days later, the country’s Parliament officially adopted new laws.