Mon, July 22, 2024

Netherlands’ Central Bank Gave Crypto Companies Two Weeks

Regulations and central bank

The Crypto industry is developing despite the coronavirus pandemic as crypto companies continue to expand their services. However, there are certain challenges as well. One of them is connected with regulations.

For example, the Netherlands’ central bank is moving to quickly enforce Dutch anti-money laundering (AML) laws, approved by the parliament in April. As a reminder, the Dutch parliament passed AML laws to comply with the European Union’s AML directives and standards.

Interestingly, the Dutch central bank gave companies less than one month to register, as crypto companies must register by May 18.

Several weeks ago, on April 21 the Dutch Upper House approved its “amended” Fourth Anti-Money Laundering (AMLD4) laws. Companies that convert crypto to fiat or offer crypto custody services have less than two weeks to comply with this requirement. Moreover, if they do not register by the deadline, the central bank will take measures against such companies.

The central bank and crypto companies

Crypto industry and the Netherlands

Importantly, the deadline comes at a time when Dutch crypto companies made it clear that they do not support this law. According to the crypto companies, this law created additional pressure on the industry.

However, crypto-to-crypto companies do not need to register.

Interestingly, it was not immediately clear why the Dutch central bank and parliament cited the EU’s amended “fourth anti-money laundering directive” in their respective statements. The country already adopted a more recent directive, so it is hard to explain why they decided to mention AMLD4.

Companies should take into account that, the central bank will impose fines. However, this is not the biggest threat, as they face the prospect of immediate cease-and-desist orders.

The AMLD5 gave EU members until January 10 to implement the directive. However, the Dutch parliament only adopted this directive on April 21. Hopefully, a draft application is enough to fulfill the registration needs for the mid-May date.

YOU MAY ALSO LIKE

Stocks in Asia, china

Quick Look: China aims to modernize industry, expand demand, stimulate growth, curb

The Indian Rupee Falls To A Lifetime Low, While Yields Soar

Quick Look: USD/INR Near Record High: The exchange rate nears an all-time

Stocks Advance as Fed-Minutes Rate Hint, alpine, nasdaq

Quick Look: Nasdaq, S&P 500, and Dow Jones fell by over 0.7%,

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

BROKER NEWS