Netherland is set to Regulate its crypto Industry

Netherland is set to Regulate its crypto Industry

crypto industry

Based on a recent report, the Netherlands government is set to add the country to the list of countries looking to have the crypto industry within its borders regulated. This was made known by the country’s central bank — De Nederlandsche Bank.

De Nederlandsche Bank

According to the country’s central bank, the authority is looking to have all business related to cryptocurrency with the country licensed in order for them to operate. The bank believes that registration of these businesses will help prevent against money laundering and alleged terrorist financing.

Under the newly drafted legislation, all cryptocurrency related businesses in Netherland are now required to get a licence to operate from De Nederlandsche Bank.

Prevent Illegal Activities

The anonymity Cryptocurrencies confers on transactions has being a major cause of concern for several governments across the world. The fact that some bad eggs are also exploiting the untraceable nature of cryptocurrency to further their ugly interest has also fueled the strict regulations cryptocurrencies is getting from various financial watchdogs around the world.

Bitcoin has been used on several occasion to conduct crimes relating to tax fraud and money laundering in the past and the act it is still actively ongoing. In its bid to counter this, the bank plans to provide an adequate oversight of the country’s crypto industry, and the first step is to ensure that all crypto related businesses in the country get themselves a license if they still want to operate their business in the country.

Based on a recent report from a local news outlet, it was stated that :
“the Dutch central bank said that cryptocurrency entities like exchanges will be compelled to know and to reveal the identities of their customers. Any “unusual transactions” should be reported to the bank, which will monitor the individuals and transactions on a continuous basis.”