Dutch AML Policy Registration for Crypto Firms Meets Deadline. What’s Next?
May 18th was the deadline for crypto companies in the Netherlands to officially register with the local financial regulator to comply with the AML rules set by the country’s government earlier in April 2020.
The regulation only concerns companies that conduct crypto-to-fiat operations and transactions while crypto-to-crypto companies are not required by law to gain local approval.
Those that do not have this approval from the DNB and still continue to conduct operations will first face a significant fine on the first act of violation, and on the second could face legal charges that could lead to actual jail time.
Not everybody is liking the new policy
Needless to say, neither the crypto firms nor the regulators themselves are happy with the new guidelines. The Netherlands, much like many other EU countries were forced to adopt the new AMLD5 guidelines set by the European Union. Unfortunately, the new guidelines aren’t necessarily designed in a way that suits every economic or social situation in different countries. In the Netherlands for example, crypto firms are faced with huge sums that they have to pay just to remain in business, in an already unpredictable market.
Does this help European traders?
The AMLD5 guidelines have come under fire not only from crypto company representatives and traders, but also lawmakers as well. As much as the EU loves to have guidelines and regulations in place on everything, many believe that the AMLD5 is just too much. It deliberately comes off as expensive for the companies themselves without bringing too much value or safety for the traders themselves, nor too much data to the local authorities.
Image courtesy of Risk Screen
Back to the list