In a landmark case for crypto currency exchange operators in the Netherlands, digital assets exchange, Bitonic, has triumphed over the Dutch Central Bank in a fight against wallet registration requirements.
According to Bitonic’s announcement, the Dutch financial authority agreed with the exchange’s view that the registration requirements were in contradiction of the law and remain in need of better motivation before being enforced.
“After reconsideration, DNB comes to the conclusion that this interpretation of Article 2, second paragraph, RtSw, given by DNB, does not do enough justice to the discretion that an institution has to implement this standard in a risk-oriented manner. DNB has therefore incorrectly set the registration requirement as a condition. for the registration of Bitonic.” As per the Bitonic announcement.
As a result, the DBN has now backtracked on its stringent registration requirements, while Bitonic is working to remove wallet verification, wallet screenshot requirements and any other unnecessary compliance complications.
The drama began when the DBN informed crypto companies of new regulatory requirements via a webinar in September 2020. The DBN stated that no company registration would happen until companies verified all wallet addresses under the Sanctions Act.
Now the recent judgment gives digital assets services and customers a little bit of breathing room, however, there are some doubts that are left lingering.
“We are pleased that this relieves our customers of an unlawful and onerous procedure. At the same time, we are concerned that the regulator only responded to the complaints of industry after the intervention of the court. What if Bitonic hadn’t gone to court?” Read Bitonic’s post.