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KYC rules in Crypto Netherlands


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The Netherlands is a major financial center and consequently an attractive venue for laundering funds generated from illicit activities, including activities often related to the sale of cocaine, cannabis, or synthetic and designer drugs, such as ecstasy. Financial fraud, especially tax-evasion, is believed to generate a considerable portion of domestic money laundering.

At the beginning of 2019 the Netherlands will consider license issue to the companies and organizations working with cryptocurrencies. At the same time, the Central Bank of the country (DNB) will be directly involved in licensing, and the initiative aims to prevent (or substantially reduce) the use of cryptocurrencies for money laundering and financing of terrorism, according to DE Telegraf, the largest daily newspaper in the Netherlands.

The aim of licensing is significant reduction of anonymous use of cryptocurrencies, as companies will be obliged to abide by KYC rules (know your customer) - according to which you must identify and identify the counterparty before conducting a financial transaction and AML (anti-money laundering), and inform the regulator about all suspicious transactions.

Currently, the bill is under public discussion, and the regulator is collecting comments on it.


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