Major Dutch News Outlet, DeTelegraaf, reported on December 11th that the Dutch Central Bank will soon require all cryptocurrency service providers to obtain a license to operate legally.
Since the dawn Bitcoin, crime has been closely associated with its existence. In the beginning Bitcoin and early altcoins were primarily used for money laundering and illegal purchases on the dark web due to cryptos anonymity. While crime is still largely associated with crypto, efforts are constantly being made in attempts to minimize criminal activity and accelerate mass adoption.
Recent attempts to minimize criminal activity include the implementation of license requirements by the Dutch Central Bank. The article by DeTelegraaf states that the purpose behind the implementation is to “prevent such cryptocurrencies being used to launder money obtained through crime or to fund terrorism.” It’s reported that for a Dutch cryptocurrency service provider to obtain this new license they will need to know the identity of their customers and report any suspicious activity to the Dutch Central Bank.
The Dutch Central Bank is not the first to take such precautions, Japan implemented similar laws back in spring. The most intriguing part of Netherlands newest action towards cryptocurrency, is that the Dutch Central Bank stated back in August that they do not recognize cryptocurrency as ‘real money’ but they do not have any intentions to ban them.
Up till this point the Dutch Central Bank has treat cryptocurrencies solely as false money used by criminals and scammers and that the market is a sham powered by Google searches and media coverage. Could this step towards licensing service providers signify a change of heart by the Dutch Central Bank?