In the last few years, there has been an increase in regulation that is being put in place towards the cryptocurrency industry around the world as it sees its use expand and its products become more popular. This has included laws relating to tax, licenses put in place to regulate who comes into the crypto industry such as a BitLicense in New York and receiving approval from various bodies to launch certain products such as the bitcoin ETF in the United States.
The Netherlands seems to be the latest country to follow in this trend as it was reported on September 3, 2019, that the country will begin with relating crypto-related firms and businesses from January 2020.
The Regulations and Their Implications
As part of these new announcements, De Nederlandsche Bank stated that all firms within the crypto industry will have to undergo relevant registrations if they are to continue with business in the coming year.
“In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank,” the statement said.
While this development has been announced now, it has been in the works for a good while as back in July 2019, ministers in the country had ordered the government to regulate the use of cryptocurrency and other digital assets due to concerns about its use for money laundering within the country. This has been a consistent concern with bodies around the world especially when the white paper for the Libra token was released this year as it was fear that it would aid the global money-laundering industry.
In January 2019, the Dutch finance minister had received an official report from Netherlands’ Authority for the Financial Markets and De Nederlandsche Bank which stated that an official licensing system should be put in place for cryptocurrency businesses and it seems this advice was heeded. This is similar to the BitLicense that operates within the state of New York in the United States which requires such related businesses to undergo certain criteria and registrations before they may operate.