Dutch crypto startups complain over local regulators interpretation of AMLD5

Tuesday 3 December 2019 09:32 CET | News

Dutch crypto startups have started to complain about the European Union’s 5th Anti-Money Laundering Directive (AMLD5) interpretation into local law.

The European Union’s anti-money laundering directive, AMLD5, comes into law in January 2020, and as a result EU states must decide how to implement the EU directive as it pertains to cryptocurrency.

The Dutch Ministry of Finance (FIN) and Dutch National Bank (DNB) have laid out their own interpretation, with critics commenting they could do irreparable damage to the young crypto industry, according to CoinDesk.

Under the new rules, cryptocurrency companies, such as exchanges, providers are expected to pay for their own supervision costs and undergo a registration process. The crypto industry complains that regulators are instituting a licensing regime, when the EU directive only calls for registration, which carries less onerous validation requirements.

Multiple crypto businesses have said that the add-ons which could lead to added operating costs, and as a result, small businesses could have to pay EUR 150,000 per year to meet the changes. While nothing has passed Parliament yet, crypto companies in the Netherlands are taking a risk-averse approach, the online publication added.

For instance, Deribit, an Amsterdam-based derivatives exchange, has even hinted at the possibility of exiting the Netherlands as AML/KYC requirements are placed on its exchange in January 2020.
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Keywords: crypto startups, cryptocurrency, crypto exchange, Netherlands, AML, KYC, money laundering, AMLD5, Dutch Ministry of Finance, Dutch National Bank, DNB
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: Netherlands
This article is part of category

Blockchain & Cryptocurrencies