Netherlands government is set to add the country to the list of countries looking to have the crypto industry within its borders regulated.
This was made known by the country’s central bank — De Nederlandsche Bank.
Based on a recent report from a local news outlet, it was stated that:
The Dutch central bank said that cryptocurrency entities like exchanges will be compelled to know and to reveal the identities of their customers. Any “unusual transactions” should be reported to the bank, which will monitor the individuals and transactions on a continuous basis.
The bank believes that registration of these businesses will help prevent against money laundering and alleged terrorist financing.
The proposed law will effectively place virtual currency companies directly within the regulatory purview of the Dutch central bank. The regulator has invited “interested parties (to) respond to the bill.”
It also said comments will include suggestions on “more measures that must reduce money laundering risks. In this way, stricter rules for the art trade and brokers will also be introduced.”
De Nederlandsche Bank has generally been open-minded about digital assets, central bank has previously spoken of how cryptocurrency, in its current state, isn’t a risk to financial stability.
But now under the newly drafted legislation, all cryptocurrency related businesses in Netherland are now required to get a licence to operate from De Nederlandsche Bank.