Some weeks ago, several agencies raised the importance of a well-regulated industry to curb crime rates within the space. State-owned agencies made some regulatory framework, especially the American agency, FinCEN. FinCEN still faces some controversy concerning the new proposed bill, which it explained that it would reduce cases of money-laundering.
The American legal system is strict about money-laundering, which was the major push for US bodies to create related regulations. Being a world power, America influenced a lot of rules and agitated for transparency pertaining wallets. In the Netherlands, with the new KYC requirements passed by the nation, exchanges like Bitstamp must follow the due process to function in the country.
Bitstamp to follow regulations
Netherland-based users must verify their address ownership to use a wallet in the country. With these new regulations, Bitstamp has no choice but to ask address owners for personal details concerning withdrawal addresses to go inline with the European country’s regulatory effort. Countries like Italy announced that cryptocurrency is a primary means which criminals use to launder money.
In a meeting hosted by the US Treasury secretary, many powerful countries shared their opinions on the agitation for new laws concerning the blockchain platform to restrict and discourage criminals. Also, the countries admitted that digital assets are the future of money with their streamlined structure.
A particular email leaked to the space confirming Bitstamp’s new step on following the country’s regulations. According to the leak, it read that the exchange would confirm if customers own a third-party wallet or account before he/she transfers to it.
The prominent trading platform explained that whitelisting was already a part of the exchange’s security features, but now, Netherland users must follow the process due to stated regulations. Following the new laws, the central bank hinted at some restrictions that crypto holders could face in its mission to achieve transparent operations.
Dutch Central Bank requires customer verification
Ever since the country spoke on taking steps to regulate wallets, relevant bodies like the Dutch Central bank eventually proposed some laws, which were eventually passed late last year. The nation hammered more on Bitcoin and the need for BTC wallet holders to go through extra verification before utilizing their wallets.
Another exchange within the region opined that the country coerced trading platforms to ask for more details from wallet owners. Netherland felt that those new limitations would allow state-owned bodies to trace suspicious-looking addresses.
The central bank also gave exchanges the duty of verifying that platform users and beneficiary accounts are not on the sanction list. The body explained the Sanction Act obliges relevant bodies to check all payment transactions and notify the central bank if members of the sanction list try to receive or transfer funds.
Unfortunately, numerous restrictions frustrate businesses like BitKassa, which exited the European country due to its stringent requirements. The trading platform opined that the central bank’s requirements were unreasonable with Bitcoin wallet regulations, making it difficult for exchanges to follow them, leading to a series of market exits for more willing governments.