Dutch Central Bank Revokes Strict Verification Rules for Crypto Exchanges
The cryptocurrency industry in the Netherlands has won a small but significant battle. The country’s central bank has canceled some excessive verification procedures that it imposed on crypto service providers last fall. The move comes after a local exchange took the matter to court. DNB Takes a Step Back on Unlawful KYC Requirements De Nederlandsche Bank (DNB) has backpedaled on some recently enforced regulations regarding the crypto industry. In November 2020, the regulator instructed crypto platforms to obtain additional information from users as part of their know-your-customer....
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One Dutch Bitcoin exchange has taken legal action against the central bank over its controversial crypto wallet verification law. Dutch Bitcoin exchange platform, Bitonic, has filed a preliminary injunction at a Rotterdam court seeking the suspension of a wallet verification rule enacted by the central bank.Back in November 2019, De Nederlandsche Bank, or DNB, mandated crypto exchanges to ensure their users comply with stringent Know Your Customer protocols. These rules included verification steps for withdrawal wallets, which Bitonic called a nuisance.At the time, Bitonic was only one of....
The Dutch Central Bank has lost a legal battle over its uninformed and bureaucratic bitcoin address verification requirements.
A Dutch bitcoin (BTC) exchange has filed a preliminary injunction at a court in Rotterdam to suspend the central bank’s additional wallet-verification requirements. Bitonic seeks to challenge the new rules enacted by the De Nederlandsche Bank (DNB) on Sept. 21, 2020. Dutch Exchange Argues Additional KYC Rules Lack ‘a Proper Legal Basis’ Per the bitcoin exchange’s announcement, the additional know your customer (KYC) requirements imposed by the central bank violate users’ privacy. However, the crypto firm clarifies that the legal obligations “are not....
The Dutch central bank has fined cryptocurrency exchange Binance 3.325 million euros for offering crypto services in the Netherlands without the legally required registration. Binance has appealed against the fine and has now submitted an application to register with the central bank. Binance Fined by Dutch Regulator The Dutch central bank, De Nederlandsche Bank (DNB), revealed Monday that it has fined Binance Holdings Ltd. for offering crypto services without registration as required by law. The administrative fine of 3.325 million euros ($3.4 million) was imposed on the cryptocurrency....
Unique in Europe, the Dutch central bank now requires Bitcoin exchanges to prove that their users actually control their withdrawal addresses. Bitconic, a Netherlands-based Bitcoin (BTC) exchange, has informed its users that they now need to comply with a new verification measure in order to continue to use their services. The change comes following new requirements from the Dutch central bank, which were published in Nov. 2019 and stipulate that:"Crypto service providers must check whether their clients and any ultimate beneficiary owners (UBOs) are on a Dutch or European sanctions list....