Regulators ask for international cryptographic rules to be implemented. In the Netherlands there are less than 30 cryptographic service providers
Pete Hoekstra, Minister of Finance of the Netherlands, received official advice for the introduction of a licensing system for cryptocurrency-related services, including exchange offices. This was announced through press releases and official information in that country.
This new system that the Dutch authorities wish to raise will require companies to provide information about their customers to the authorities in the country. In addition, cryptographic exchanges and wallet providers should monitor their clients’ transactions and inform the authorities about suspicious activities.
The purpose of the license plan is to prevent money laundering and terrorist financing since it happens on several occasions, affecting to customers and different countries in Europe are working against money laundering.
De Nederlandsche Bank (DNB), which is the nation’s central bank, and the Netherlands Authority for the Financial Markets (AFM) published a report, in which they suggest that providers of custody and exchange solutions fiat to cryptoactive currencies must have a license, “due to the risks of financial crimes”.
The statement explains that “these risks must be addressed effectively, which can be achieved as a result of the international coordination of countermeasures provided by the Fifth European Anti-Money Laundering Directive (AMLD 5)”.
The two authorities said they are recommending the licensing regime instead of a registration system because it allows for “premarket entry assessment” to know if the parties involved can comply with AMLD 5 rules.
According to these institutions, doing only a registration regime, on the other hand, would be “less effective” since it only allows a “limited substantive evaluation” of these parts. For this reason they ask for other ideas.
Road to the Crypto-Adoption
In August, an executive of the Dutch central bank declared that cryptocurrencies are not recognized as “real money”, but that the bank has no plans to ban them. However, the Dutch authorities currently recommend revising Europe’s regulatory framework for corporate financing, in order to allow blockchain technology as a tool to contribute to the development of small and medium-sized enterprises (SMEs) and to allow the use of cryptographic assets as actions or bonuses.
Among other forms of corporate financing that may be beneficial are the Initial Cryptocurrency Offers (ICO) and the Security Token Offers (STO). In view of this, the regulators ask to implement international cryptographic rules, because the cryptographic providers complain about that in the Netherlands are less than 30 providers and the transactions volumes are “insignificant” compared with other international providers.
“The evolution of cryptos is mainly oriented on an international level given its inherent cross-border nature, and this cannot be limited to the Dutch market alone”, the report explained forcefully.
Earlier this month, the European Banking Authority (EBA) and the European Securities and Markets Authority, each one by its side, requested rules related to ICOs to be taken into account at the European Union level. In the coming weeks the results of these requests would be seen.
By María Rodríguez