09/10/20

NETHERLANDS: Dutch Central Bank Gives First Approval to Digital Asset Exchange.

As published on coindesk.com, Friday 9 October, 2020.

A cryptocurrency service operating in the Netherlands has become the first such entity to register with the country’s central bank.

Per a company press statement on Wednesday, the Amsterdam Digital Asset Exchange (AMDAX) said the registration with De Nederlandsche Bank (DNB) meant it could now go ahead and process crypto transactions.

The firm will also be allowed to store and provide custody of digital assets under the European Union’s (EU) newly implemented AML5 guidelines that came into effect on May 21.

Those guidelines, which some argue are killing crypto firms across the country, passed the Dutch Parliament earlier this year.

Amsterdam-based AMDAX said it will support private investors with portfolios beginning at 2.5 bitcoin (about $27,000 or €23,000 at press time).

The Dutch implementation of the regulations is very strict, usually including additional criteria for client assessments and for tracing the origin of money users want to invest.

DNB "justly applies" these regulations, said Valentino Cremona, co-founder and director at AMDAX.

With bitcoin often being associated with crime, the market needs a "clear legal framework," Cremona said.

The exchange's registration with the central bank demonstrates to investors that cryptocurrency is "a mature asset class, not for criminals, but for smart investors," he added.