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Economics and regulation
The Netherlands is trying to regulate cryptocurrency companies, presumably in an attempt to prevent money laundering and alleged terrorist financing. All virtual currency assets will now be required to obtain an operating license from De Nederlandsche Bank, the country's central bank, on the basis of a draft law aimed at preventing cryptographic activities such as BTC from being used for criminal activities.
Read also: The British legislator proposes taxes and utility payments in Bitcoin
Know your client for cryptographic companies
The disruptive nature of Bitcoin has often led him into the crosshairs of a system of global control of control, which is steeped in tradition. The decentralized and censorship-resistant cryptocurrency has been accused of many crimes, including the use of criminals to launder money, evade taxes and finance terrorist activities around the world.
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In a short note published in the local newspaper De Telegraaf, the Dutch central bank stated that entities of cryptocurrency as exchanges will be obliged to know and disclose the identities of their clients. Any "unusual transactions" must be reported to the bank, which will monitor people and transactions on an ongoing basis.
Its real motivation is to curb illicit financial flows facilitated by the coverage of cryptocurrency transactions, something to which an increasing number of regulators in Europe are becoming interested. "Suppliers of so-called cryptocurrencies, of which the bitcoin is the best known, will soon need a license," said the article. "The measure should help to prevent these virtual currencies from being used to launder criminal money or to finance terrorism".
The proposed law will effectively place virtual money companies directly within the regulation of the Dutch central bank. The regulator called on "stakeholders to (a) respond to the bill". In addition, comments will include suggestions on "more measures to reduce the risks of money laundering". In this way, stricter rules will be introduced for trade and art intermediaries. "
Regulation puzzle
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De Nederlandsche Bank has generally been open to digital resources, while reiterating the need for interstate regulation to stem the problems of abuse, fraud and other criminal activities. The central bank has already talked about how cryptocurrency, in its current state, is not a risk to financial stability.
But the regulation of digital currencies in the Netherlands generally reflects a broader sentiment throughout the European Union, where the processing of cryptographic resources remains somewhat opaque. In Spain, for example, last month the government said it had identified 15,000 cryptocurrency investors who will monitor to prevent evasion and money laundering.
Spain has promised to ensure that investors pay taxes on capital gains from transactions in digital currency and declare any other advantages arising from trading. However, he admitted that virtual currency taxes will not put much in the coffers of the state "because the ownership of bitcoins is opaque for tax authorities and their negotiation is almost impossible to track".
Several European countries are experimenting with the regulation of cryptocurrency at different levels. L & # 39; U.K. is planning a ban on derivatives related to BTC and France is trying to build a crypto shelter with friendly laws. There is no congruence in the approach to the regulation of the digital currency within the European economic block.
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Regarding money laundering, cryptocurrencies have had to face some criticism, with allegations that about $ 90 million have been channeled in this way using over 45 digital coins from 2016. But the figure does not record on the radar of global illicit flows compared to those commercial banks. For example, the German Deutsche Bank is being investigated for allegedly helping criminals who recycle cash into billions of dollars. Last year, the bank was fined $ 700 million with similar charges – and this is just an institution.
What do you think of the cryptology proposal in the Netherlands? Let us know what you think in the comments section below.
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