Dutch central bank De Nederlandsche Bank (DNB) made another hit on local digital currency companies as it announced the tighter crypto regulations this week.
The DNB made a statement this Monday, claiming that all crypto service providers must register with the central bank by May 18. In case the companies do not fulfil the requirement, they will be immediately shut down.
The ultimatum is addressed to all local companies of the crypto industry, that operate on the Netherlands soil. The bank specifies that requirement concern both natural and legal persons together with the companies, who provide exchange services including fiat currencies. Crypto custody providers are also among those, who fall under requirements.
Moreover, the financial authority noted that companies without registration may not be active as a crypto service providers. According to DNB, violating the requirement is a criminal offense and qualifies as an economic offense under the Economic Offenses Act, that can be reported to the Public Prosecution Service.
Tighter approach due to EU directives
The rigid restrictions come after the Dutch Senate voted on April 21 in favor of the Implementation Act for the amendment of the European Union’s Fourth Anti-Money Laundering Directive. Meanwhile, the Ministry of Finance aims to bring requirements into force on May 18.
The ultimatum comes amidst heavy criticism for the central bank and Ministry of Finance (FIN) over the implementation of the 5th Anti-Money laundering Directive (AMLD5), that came into effect on April 21. The new law requires crypto exchanges and custodians to register with their local regulator and comply with Know-Your-Customer (KYC) and anti-money laundering (AML) procedures.
Meanwhile, Dutch crypto players blame local authorities for unnecessarily strengthening the 5th directive. According to them, additional requirements and fees bring unequal opportunities to small-scale crypto companies that become uncompetitive and finally have to close.