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Unique in Europe, the Dutch central bank now requires Bitcoin exchanges to prove that their users actually control their withdrawal addresses.
Bitconic, a Bitcoin ( BTC ) exchange based in the Netherlands, has informed its users that they must now comply with a new verification measure to continue using its services. The change follows new requirements from the Dutch central bank, which were published in November 2019 and stipulate that:
"Crypto service providers should check whether their clients and beneficial owners (UBO) are on a Dutch or European sanctions list and report any indication to DNB. Risk-based controls are not allowed [...] Compliance also It implies that institutions must verify incoming and outgoing payment transfers. "
Bitonic has informed clients that they must now therefore provide additional details, including the type of wallet they use. They must also verify that they are the "legitimate" controller of the Bitcoin address they provide to make withdrawals from Bitonic. To do this, they need to upload a screenshot of their wallet or sign a message.
All these measures, Bitonic affirms, are "a nuisance", highlighting: "we do not agree with the measures." Crypto journalist Aaron van Wirdum notes on Twitter that the requirements far exceed those of crypto companies in the rest of Europe:
In April this year, as part of its implementation of the European Union's Fifth Anti-Money Laundering Directive, or AMLD5, the Dutch Ministry of Finance directed the Dutch Central Bank to monitor the country's cryptocurrency industry . Already then, experts warned that the Ministry of Finance could be exceeding its authority by appointing the institution to oversee cryptocurrency companies.
“This is much more than what [AMLD5] has indicated. This planned form of supervision is unusual, ” Dutch lawyer Frank 't Hart said at the time.
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