Too strict laws and regulations; many crypto companies and projects are terrified. It costs a lot of extra time and money. One such guideline that makes life difficult for the Dutch crypto sector is the wallet verification obligation imposed by the Dutch Central Bank (DNB). The Dutch bitcoin (BTC) seller Bitonic has today achieved a small victory over this requirement.
The company took DNB to court at the end of January. Today the court in Rotterdam finally ruled, and it was in Bitonic’s favor! But what was this case about again?
Crypto companies in the Netherlands recently have to comply with certain supervisory requirements, which means that they must be able to verify whether the owner of a wallet actually says who he or she is. This verification obligation is part of the Sanctions Act, a law from 1977.
The provisional court now finds that Bitonic’s request is admissible. However, this does not mean that DNB has to stop the verification obligation immediately. In the article on the Judiciary you can read:
“DNB must, however, provide further reasons for the registration requirement in the decision on the objection. It goes without saying that DNB will enter into discussions with Bitonic about the way in which it complies with its obligations under the Sanctions Regulations.
Furthermore, the provisional court states that the registration obligation has characteristics of a licensing regime, something that several parties already warned about in 2019.
DNB must now respond within six weeks to the concerns that Bitonic has expressed. The 25 crypto companies that sent an open letter to DNB at the end of 2020 in which the same concerns were expressed, will therefore soon receive more clarity about the future of these guidelines.
In related news, the Dutch BUX announced that its registration with DNB has been approved. “The DNB registration is an important step for BUX Crypto in its mission to provide a safe and accessible way to invest in cryptocurrencies,” the company said in an announcement.