Holland central bank to regulate crypto firms by 2020

03 Sep 2019

The central bank in Holland has announced today it will begin regulating companies offering cryptocurrency-related services as of January 10, 2020.

According to a Reuters report on Tuesday, De Nederlandsche Bank affirmed that such firms in the sector are required to register with the bank should they wish to continue their operations.

The bank’s official statement says: “In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”

As per a Coin Telegraph report, ministers in Holland had pressed the government in July to regulate cryptocurrencies and certain cash payments, primarily due to money laundering worries.

Earlier this year, in January, Dutch Minister of Finance, Wopke Hoekstra took official advice from the Netherlands’ Authority for the Financial Markets and De Nederlandsche Bank that a system of licencing should be utilised for digital currency services.

As it stands, the Netherlands doesn’t recognise cryptocurrency as legal tender. That said, last year a Dutch court ruled that Bitcoin was a legitimate “transferable value” in a penalty payment case.

deVere CEO and founder Nigel Green recently stated: “To my mind, there is no question that regulation is necessary and is on its way. It is clearly an area in which there is an enormous need for a robust international regulatory framework and strict ongoing supervision”.

“One of the best ways to address the regulatory issues is via the exchanges”.

He continues: “Nearly all foreign exchange transactions go through banks or currency houses and this is what needs to happen with cryptocurrencies. When flows run through regulated exchanges, it will be much easier to tackle potential wrongdoing, such as money laundering, and make sure tax is paid.

“Robust regulation that is devised, implemented and enforced by international financial regulators will mean further protection for the growing number of people using cryptocurrencies, the less likely it will be that criminals will use these digital payment methods, the less potential risk there will be for the disruption of global financial stability, and the more potential opportunities there will be for higher economic growth and activity in those countries which introduce it”.