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Netherlands May Ban Foreign Cryptocurrency Entities From Operating in Its Territory

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Cryptocurrency entities located outside of the Netherlands could be subject to blockages under the new regulations to cryptocurrencies that are being made in the European country.

This information comes up days after the recent mandate of De Nederlandsche Bank that cryptocurrency companies operating in the country must register with the DNB.

According to statements by DNB spokesman Tobias Oudejans, current legislation before the Dutch House of Representatives will not only force national companies to register with the central bank, but will prohibit foreign cryptocurrency companies from providing their services within the Dutch territory.

At this point, it should be noted that foreign entities include all companies registered outside the European Economic Zone, which is made up of most of the countries of the continent.

According to Oudejans, this legislation, which addresses the fifth Anti-Money Laundering Directive (AMLD 5), is still under consideration. However, all Dutch cryptocurrency companies must register with the central bank before January 10, 2020, the deadline mandated by AMLD 5.

Local Cryptocurrency Companies are Happy With The Regulation

The founder of Crypto2Cash, PJ Datema, expressed his agreement with the regulation of the Dutch cryptocurrency market. Speaking to CoinDesk, he said: “It’s good that they’re taking action. If we want the market to mature and the participants to evolve… you want anti-money laundering (AML) and proper know your customer (KYC). ”

However, it’s still unclear how international companies or other European companies will operate under the laws that are being created. For Datema, regulation is very beneficial for local companies and has the potential to block competitors in France, Germany and other countries.

For the moment, only time will tell how the final legislation will be, how the DNB will enforce these laws, and whether international companies may or may not operate in the Dutch territory.

Source Link: https://www.coindesk.com/dutch-interpretation-of-eu-anti-money-laundering-rules-may-block-foreign-firms

About the author

Jhon Fernando Maldonado

Jhon Fernando Maldonado

Internet marketing and cripto currency journalist / writer. He has a degree in Linguistics from Universidad de Los Andes, in Venezuela. Passionate about digital marketing, with knowledge in topics related to technology and web positioning.

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