- February 25, 2019
- Posted by: fiserconsulting
- Category: AML, Banking, Blockchain, News Item, Technology, Technology Change
In order to prevent money laundering and terrorism financing, Dutch Financial Authorities have decided to plan a licensing scheme for crypto exchanges.
This decision stems from a report that was published by the nation’s central bank, De Nederlandsche Bank (DNB), and the AFM which is the Dutch Authority for the Financial Markets. The report concludes that cryptocurrencies carry high financial crime risks and that they, therefore, need licensed solution providers.
Both DNB as the AFM prefer a licensing regime over a registration system because it allows a pre-market entry assessment that informs the parties involved if they comply with the AMLD5 rules, while a registration regime only allows a limited assessment.
In the report, both Dutch financial parties have also concluded that the EU regulatory framework for corporate funding should be altered to enable a blockchain-based development of small-and-medium-sized enterprises (SMEs).
Apart from that, the report also mentions reconciling the national definition of security, aiming to bring new forms of corporate funding in European legislation, such as initial coin offerings (ICOs) and security token offerings (STOs).
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