De Nederlandsche Bank (DNB) has announced that cryptocurrency exchanges operating in the Netherlands will be supervised by the central bank from January 10 2020.
It is now warning any exchange swapping digital currencies for physical money to get their house in order in due time. The announcement comes as the fifth European Anti-Money Laundering Directive will be implemented into Dutch laws, making DNB the regulator in charge of supervising the cryptocurrency exchange sector.
In its role as crypto watchdog, DNB will ensure providers of cryptocurrencies and digital wallets are registered with the bank. The companies must demonstrate that their processes are effectively designed to prevent money laundering and terrorist financing. It will also asses the people in charge, including board members and shareholders, to ensure that their management of these processes are up to snuff.
DNB also warned that firms failing to register with the bank will not be allowed to trade in the Netherlands.
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