The Dutch central bank proposes that cryptocurrency service providers be licensed


It's no secret that the cryptocurrency industry has grown tremendously in the last five months. Despite its many positive characteristics, some negative aspects continue to torment the sector. The Dutch central bank proposes that all cryptocurrency service providers require a license before offering their services in the Netherlands.

Cryptocurrency service providers in the Netherlands to obtain a license

Cryptocurrency service providers in the Netherlands may soon request an exclusive license from the central bank to operate in the country. This proposal was presented in an attempt to curb money laundering and other risks associated with cryptocurrencies such as terrorist financing.

As reported by some online press agencies, service providers will be required to have accurate information about all their customers to qualify for the license. They will also have to report any unusual transactions to the financial regulatory authority.

All data will be monitored by the Dutch Central Bank on a daily basis to ensure that risks are adequately mitigated. Similar laws were introduced in Japan; all cryptocurrency exchanges in the country are required to report all suspect cryptocurrency transactions to the financial regulator. So far, the laws have helped to hide hundreds if not thousands of suspicious transactions.

In particular, in August of this year, Dutch central bank officials announced that cryptocurrencies are not recognized or treated as real money and banks have plans to ban them altogether. Shortly after this comment, one of the central bank advisors said that changes in the price of Bitcoin are directly linked to Google searches for digital currencies / cryptocurrencies.

These sentiments have shocked the entire cryptocurrency industry, but fortunately they have not discouraged the majority of investors from continuing to buy their preferred digital currencies and trading them on various exchanges. It is essential that the Dutch government has a task force to investigate the feasibility of cryptocurrencies and blockchain technology instead of implementing laws that will make the functioning of cryptocurrency service providers difficult.

In October 2018, it was reported that Port of Rotterdam had collaborated with Samsung and one of the major Dutch banks to test a blockchain system that would be used to offer shipping services in this port. Note that Port of Rotterdam is the largest port in Europe.

In September 2018, Albert Heijin,
The largest supermarket chain in the Netherlands has announced the intention to use the blockchain
technology to simplify the production process of orange juice.

Final comments

The Dutch Central Bank's proposal to grant licenses to cryptocurrency service providers is good, but all stakeholders need to be involved in the legislative process. Involving all parties will ensure that the laws created do not paralyze the sector. Get the latest cryptocurrency news here.

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