The Dutch Bitcoin company reluctantly tightens the rules at the request of the central bank

November 18, 2020 Coin Payment

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Bitconic, a Netherlands-based Bitcoin (BTC) exchange, has informed its users that they now have to comply with a new verification measure to continue using its services. The change comes as a result of the Dutch central bank’s new requirements, published in November 2019, which state:

“Cryptographic service providers should check if their customers and any final beneficial owners (UBOs) are on a Dutch or European sanctions list and report any results to DNB. No risk-based checks are allowed. […] compliance also implies that institutions must control incoming and outgoing payment transfers “.

Bitonic has informed customers that they now need to provide further details, including the type of wallet they use. They also need to verify that they are the “legitimate” controller of the Bitcoin address they provide to make withdrawals from Bitonic. To do this, they need to upload a screenshot from their wallet or sign a message.

All of these measures, Bitonic says, are “a nuisance”, stressing, “we don’t agree with the measures alone”. Cryptocurrency journalist Aaron van Wirdum notes on Twitter that the requirements far exceed those imposed on cryptocurrency companies in the rest of Europe:

In April this year, as part of its implementation of the European Union’s Fifth Anti-Money Laundering Directive, or AMLD5, the Dutch Ministry of Finance tasked the Dutch Central Bank with monitoring the country’s cryptocurrency industry. At the time, experts were already warning that the finance ministry might override its authority in appointing the institution to oversee cryptocurrency companies.

“This is much more than what the [AMLD5] has indicated. This envisaged way of supervision is unusual, ”Dutch lawyer Frank ‘t Hart said at the time.