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For Smooth Transaction Crypto Service Providers Will Need License Says DNB

For Smooth Transaction Crypto Service Providers Will Need License Says DNB

For Smooth Transaction Crypto Service Providers Will Need License Says DNBCrypto service providers will soon be granted authorized license from the Dutch Central Bank, according to Dutch newspaper De Telegraaf. The article states that the step was taken in the hope that it will avoid cryptos from being deployed for money laundering obtained through terrorist financing and crime.

To qualify for a license, vendors will have to present of who are their customers and report unusual transactions. All these data are controlled by the Dutch central bank, De Nederlandsche Bank.

Following the implementation in April of similar laws in Japan that exchanges of cryptocurrencies should report doubtful transactions, a significant increase in the number of such reports was registered this winter.

In August, a leader of the Dutch central bank said that cryptocurrencies are not recognized as real money, but the bank hasn’t yet decided to ban. Also in August, a central bank consultant said Bitcoin’s price changes are overlapping with Google’s crypto-currency searches.

As reported by the Cointelegraph in October, the Port Authority of Rotterdam, together with Dutch bank and Samsung, is testing the use of blockchain in shipping at the largest port of Europe. Also in the Netherlands, Albert Heijn, the largest supermarket chain in the country, showed in September that the use of the blockchain to make the orange juice production transparent.

The regulation of cryptocurrency has been one of the most critical concerns for the regulators. In the other part of the world in the US, the regulation has turned out to be a hurdle for the innovators in the country and it seems that more nuanced approach is required to make it full-fledged.

Cointelegraph has constantly reported that representatives of CFTC and SEC are persistent for communicating the need to comply with current protocols while dealing, issuing, and trading cryptocurrencies.