Netherlands: DNB warns financial institutions against risks of trading Bitcoin

Friday 6 June 2014 13:02 CET | News

The Dutch Central Bank (DNB) has issued a warning on Bitcoin aimed at banks and other financial institutions informing them that they should be aware of integrity risks derived from processing transactions related to digital currencies, reports.

The warning was issued on 5 June, 2014 and advises that digital currencies offer a high degree of anonymity and, as such, financial institutions should act carefully, as digital currencies are classified as financial products invested with high usage risks.

DNB highlights that digital currency transactions seem very transparent at first glance, due to the use of a public ledger. However, transactions are not reducible to physical persons and, hence, can be involved in money laundering activities.

Nevertheless, DNB has announced that whether Bitcoin can be feasible for large scale trading or not depends upon preliminary assessment of the overall risks inherent in the digital currency. There is no specific date for the control measures, but the bank says it will begin rolling them out in 2014 in an effort to improve customer experience and monitor emerging companies.

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Keywords: Netherlands, DNB, Bitcoin, risk, digital currency, crypto-currency, public ledger, transactions
Categories: Payments & Commerce
Countries: World
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