The Netherlands give a blow to cryptocurrency market promising ban on anonymous transactions


  • The authorities are concerned that digital assets are used in criminal activity.
  • Cryptocurrency community says the ban will do more ham than good.

The Netherlands authorities are actively looking for effective ways to ban anonymous cryptocurrency transactions. Namely, they want to force cryptocurrency exchanges and crypto wallet service providers to obtain licenses. 

The Authority for the  Financial Markets (AFM) and  De Nederlandsche Bank (DNB) lodged a recommendation with the minister of finance Wopke Hoekstra to bring in a licensing system for cryptocurrency-related companies.

The Minister supported the idea and said that he would follow the recommendation right away, according to the local media outlet NOS.
It Is worth noting that in December 2017 Mr. Hoekstra openly called for obligatory licensing for cryptocurrency trading platforms and wallet services. However, the interest in digital assets subsided amid bearish market, making hash steps less urgent. 

Meanwhile, the authorities are still concerned that cryptocurrencies may be used to finance terrorism and launder money. Thus, the Financial Intelligence Unit of the police in the Netherlands reported that the number of suspicious cryptocurrency transactions skyrocketed from 300 to nearly 5,000 in 2018. 

The government believes that this is a real problem that needs to be tackled in accordance with the 4th Directive of the European Union. It requires that all trading platforms engaged in exchanging cryptocurrencies into fiat money complied with the general rules created for the financial services.

While the authorities believe that this step is necessary, Richard Kohl form Bitcoin Nederland Foundation believes that this decision will hit young and progressive companies and hamper innovations in the country.  

Earlier this month ESMA announced that certain digital assets might be classified as financial assets.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD shoots higher following Bakkt news

Above is the 5-minute BTC/USD chart which shows the powerful surge in volume when the Bakkt announcement was made. The arrow shows the exact time of the release, prior to the story BTC/USD was trading close to 10,000.00 and bouncing off the mean value price for the day. 

More Bitcoin News

Ripple price analysis: Confluence detector shows a lack of healthy resistance and support levels

Ripple is currently trending in a flag formation and is priced at $0.259. This Thursday, the bulls kicked in after the price fell to $0.242 and took the price up to $0.264. 

More Ripple News

Cardano Foundation partners with Berlin blockchain venture studio Konfidio, market reaction muted

The Cardano Foundation revealed that they have partnered up with Berlin blockchain venture studio Konfidio. The main aim of the partnership will be to execute real-world business cases on the Cardano blockchain. According to their announcement:

More Cardano News

Ethereum: ETH/USD bear trapped below broken support range

Ethereum defended the support at $170 before a shallow recovery pulled the price above $180. ETH/USD must reclaim position in the broken support range between $190 - $200.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Safe-haven or a high-yield asset? Bitcoin qualifies for both

The cryptocurrency market has been a mixed picture this week. Bitcoin attempted to settle above $12,000 practically every single day of the week...

Read the weekly forecast

BTC

ETH

XRP