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Netherland Registers 20 Crypto Exchanges, But Doesn’t Actually Knows Much – Analysis.

The Dutch central bank – De Nederlandsche Bank NV – has registered around 20 crypto exchanges within the country but is not any closer to determining the number of cryptocurrency investors in the country.

In line with the Dutch reporting media service Nu.nl, regulators like DNB along with the Autoriteit Financiële Markten, or AFM, along with the investor group Vereniging Van Effectenbezitters, or VEB are unsure of the cryptocurrency ownership demographic within the Netherlands.

Since 2020, Dutch authorities began enforcing the European Union’s Fifth AML [Anti-Money Laundering] Directive with significant implications for cryptocurrency businesses.

Beneath the AMLD-5 paradigm, the De Nederlandsche Bank has mandated strict compliance with KYC [Know Your Customer] and AML protocols for Dutch crypto exchanges, a move that has been met with severe criticism from industry participants given the invasive nature of the policy.

Also in January, Bitstamp imposed KYC for Dutch traders withdrawing crypto to external wallets, demanding photographic proof-of-wallet ownership before effecting such payments. As reported earlier, Netherlands-based Bitcoin [BTC] exchange platform Bitonic dragged the DNB to court over the wallet verification rule.

Additionally, strict KYC requirements aside, the DNB continues to take care of a neutral position concerning cryptocurrency trading, with a central banking spokesperson telling Nu.nl:

“We aren’t advising for or against investment but we do have an opinion. Crypto doesn’t represent anything, it’s not a share in anything. It’s not a loan which is returned with interest.”

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