Central banks and financial authorities worldwide are starting to take cryptocurrencies seriously, especially from a normative perspective. If the UK FCA recently released a Final Guidance that set out the cryptoasset activities that the authority regulates, now it is the Dutch central bank, De Nederlandsche Bank (DNB), which has ruled on the matter. The DNB has announced that all the firms offering services for the exchange between virtual money (cryptos) and regular money, and crypto wallet providers are expected to become subject to their integrity supervision.
Starting from 10 January 2020, DNB will check on them in next months for further collaboration. “We will call on them to get in touch with us, as we would like to discuss our supervision with them. We are also making our own preparations. If these firms contact us now, we can reach them more easily later on and also get an idea of how many firms will come under our supervision,” they said in a statement.
This statement comes from the need to regulate these assets, as cryptos are vulnerable to financial crime, which is why it is important to set up integrity supervision. In fact, The Dutch central bank has been required to start supervising these businesses under the fifth European anti-money laundering directive (AMLD5) and its implementation in Dutch law.
What will supervision look like?
According to the authority, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers must register with De Nederlandsche Bank (DNB). Also, their board members and some shareholders (qualifying holdings) will need to be assessed. They must demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing, and that board members and other policymakers adequately manage these processes.
“Once a firm is registered and we have assessed board members and other policymakers, we will monitor that it complies with the rules on money laundering and terrorist financing. Firms that do not register will no longer be allowed to provide crypto exchange services and wallets,” they concluded.
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
