Regulations

Dutch Minister calls on the regulation of cryptocurrencies

Just weeks after the FAFT sent out recommendations for its 37 member state countries to carryout tighter regulations on cryptocurrencies, the Dutch minister of finance is requesting the country carries out tight controls on cryptocurrencies like Bitcoin.

According to the NLTimes address he sent out to the chairman of the government today, he wrote;

“Crime cannot pay. Not in the Netherlands, not in Europe, and not globally. This makes it possible for criminals to stay out of the reach of the government and to enjoy those proceeds undisturbed. These illegal proceeds can also be used to finance the same or new criminal activities”

His call is more directed towards better controls on ICOs and cryptocurrency services in the country and will want to see cryptocurrency wallets get regulated

The Dutch are already busy with several KYC procedures. For example, buying cryptocurrencies on most of the exchanges registered in the country require the buyer to provide documentation such as their ID cards or passports, and some exchanges even require that their users provide their BSN number (social security number) before they can be approved to buy cryptocurrencies.

“Criminals who use the financial system to disguise their criminal proceeds seriously compromise the integrity and security of the financial system. Money laundering is an immense and complex problem and it is therefore very important that combating money laundering in a joint and effective way” Wopke Hoekstra , Dutch Minister of Finance.

This is in a bid to make the Netherlands one of the top countries fighting against money laundering and his proposal is backed by the Minister of Justice, Ferdinand Grapperhaus.

According to the recommendation of the FAFT, its member states should endeavour that cryptocurrency transfers include information such as their name, bank account details, physical address and Identity number.

This is not the first time the minister of Finance has raised concerns over cryptocurrencies. In November of last year, he proposed a ban on ads relating to risky investments after the Netherlands Authority for Financial Markets (AFM) called ICOs a “dangerous cocktail”.

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coinmag

Kinsley is an MSc student in Information Management and a blockchain consultant. He is a lover of big data with particular interests in disruptive technologies like blockchain technology and Artificial Intelligence.

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