On the face of things, Holland is regarded as a country that has a generally crypto-friendly profile. It’s the home of the Gulden coin project, the mobile payment system which works with several local banks. Many Dutch companies such as Cryptoindex have built a thriving business in Holland. Amsterdam is also home to a thriving crypto community and a regular meeting point for crypto enthusiasts from all over the world. However, all that could change.
A few months ago, Dutch law enforcement closed the Bestmixer Bitcoin mixing service for running an alleged $200 million bitcoin laundering operation.
Earlier this month the Dutch central bank announced that it will start regulating firms offering cryptocurrency-related services from January 10th next year. De Nederlandsche Bank clarified that companies in the crypto sphere will be required to register if they wish to continue to operate. The order includes companies based outside the Netherlands that are serving Dutch nationals, even via the net.
Citing Anti-Money laundering directives, the registration period will be available six months after the January date. Firms that do not register with the DNB may be closed down once the rules go live.
Dutch Worries
The worry is that the move by the Dutch Central Bank is a forerunner as to what will happen to the rest of the European Union in 2020. Based on the Fourth Anti-Money-Laundering Directive, any vaguely defined crypto firm, including wallet providers, could be required to implement KYC procedures and other methods of screening.
This summer previously anonymous exchanges were required to add a KYC procedure and de-anonymize trading as per the recommendations of the Financial Action Task Force (FATF).
Whether Holland becomes a no-go area for crypto remains to be seen. Crypto friendly countries such as Lithuania and Estonia have a lot to lose from such regulation. Time will tell if previously anonymous and open-source wallets will remain compliant, or whether Dutch authorities will also target the wallets builders.
At this stage, there are a lot of unanswered questions about what the Dutch actions mean for Holland, let alone the EU. However, crypto enthusiasts throughout the world should be watching how events unfurl in the lowlands country.
