The central bank of the Netherlands is preparing to supervise the country’s crypto sector. The bank has requested crypto exchanges and wallet providers to come forward and submit some information. Once the law takes effect, these operators will be required to register with the central bank to continue operations.
Central Bank to Supervise Crypto Firms
The Netherlands’ central bank, De Nederlandsche Bank (DNB), announced Tuesday that it is preparing to start supervising crypto exchanges and custodian wallet providers. Noting that these operators are expected to become subject to its supervision starting Jan. 10, 2020, the bank detailed:
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 DNB added that it will also assess the firms’ board members, some shareholders, and other policymakers. Further, these companies “must demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing, and that board members and other policymakers adequately manage these processes.” The bank emphasized:
Firms that do not register will no longer be allowed to provide crypto exchange services and wallets.
These requirements stem from the fifth European anti-money laundering directive (AMLD5), the bank explained, adding that it is required to supervise crypto businesses under this directive and its implementation into Dutch law. Reiterating that the requirements must be implemented by Jan. 10 next year, the bank clarified: “The aim is for the amended Act to enter into force on that date. This means that the requirements apply as of that date, and that parties must also register as of that date.”
The Dutch central bank has acknowledged the growth of the crypto sector,