De Nederlandsche Bank NV, the central bank of the Netherlands, granted AMDAX BV the ability to operate under its jurisdiction.
It happened for the first time a digital asset company has been approved to operate in the country after introducing new and strict regulations that made many cryptocurrency-related companies decide to close or leave the country.
Receiving official certification from the governing body means that AMDAX BV, an Amsterdam-based digital asset services company, can now provide Dutch residents access to its products according to an Oct. 7 report from Finextra.
According to the company, registering AMDAX BV as the first cryptocurrency service provider in the Netherlands enables AMDAX to process transactions and hold cryptocurrencies.
Fintech companies in the Netherlands must comply with European Union regulations. These regulations have been significantly tightened in recent years, including its updated anti-money laundering laws, known as the 5th Money Laundering Directive, or AMLD5.
In September 2019, the DNB directed any crypto-related entity to register with the bank, pointing to January 2020 as the starting period for any request for approval.
Serving institutions as well as individuals, AMDAX BV started its path towards AMLD5 approval in May, Finextra reported. Although other cryptocurrency companies have previously operated in the country, the new AMLD5 laws caused such entities to decide to close or move. Deribit, popular crypto derivatives platform left the Netherlands in January 2020.
AMDAX BV is apparently the first digital asset company registered under the new regulatory structure. Valentino Cremona, AMDAX BV co-founder, stated that DNB applies relatively high standards to this registry. The market needs definite legal frameworks, such as DNB’s set of requirements. This record shows investors that crypto is a mature asset class, not for criminals, but for savvy investors.
AMDAX BV additionally noted in its statement that all cryptocurrency companies must obtain this registration. Without it, they cannot function in the Netherlands. The other Dutch cryptocurrency companies have time until Nov. 21 to get registration.
Regulatory oversight has been tightened in other regions as well, with US regulators recently bringing criminal charges against crypto derivatives exchange BitMEX.
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