Netherlands’ Central Bank to Require License from Crypto Service Providers

Dec 13, 2018 at 18:05

The Netherlands is planning to require cryptocurrency service providers to obtain a license from the central bank in order to be operational.

According to local news outlet DeTelegraaf, the move is seen to “prevent such cryptocurrencies being used to launder money obtained through crime or to fund terrorism.”

Under the proposal, providers must know who their customers are and report unusual transactions, to secure such license.

Meanwhile, the collected data will be monitored by De Nederlandsche Bank, the Dutch central bank.

Notably, earlier this year, an executive at the Dutch central bank expressed that cryptocurrencies are not recognized as “real money,” but has no plans to ultimately ban them.

Last April, the Netherlands joined a European Blockchain Partnership with 21 other member countries.

Other participating nations include Austria, Belgium, Bulgaria, Czech Republic, Estonia, Finland, France, Germany, Ireland, Latvia, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.