As a result of the legislation and regulations introduced in the Netherlands on May 21, 2020 (the amendment to the fourth anti-money laundering directive), providers of services for (i) exchanging digital assets and non-cash money and (ii) providers of custodian digital asset wallets are required to registers with the Dutch Central Bank (DNB) in order to be able to continue to offer their services. Bitvavo obtained this registration on November 11, 2020.
What does this registration mean for users?
Due to the new regulations, Bitvavo is obliged to verify the identity of our customers before it is possible to use our services. Also according to De Nederlandsche Bank, the supervision means that digital currencies may only be sent to verified wallet addresses. For this reason users are required to verify a wallet address before sending crypto to another wallet address.
What does this registration mean for Bitvavo?
Due to Bitvavo's position as market leader in the Netherlands, and with an office located in Amsterdam, Bitvavo had to register with the Dutch Central Bank as a crypto service provider. The registration of Bitvavo and the rapidly developing regulatory framework regarding digital assets are accompanied by an increasing interest from institutional clients. These developments have contributed to the fact that, in 2020, more than € 3 billion of digital assets was exchanged by Dutch clients on the Bitvavo platform.
Which aspects does this registration cover?
Bitvavo is registered with the Dutch Central Bank (DNB) as a provider of digital asset services. The Dutch Central Bank only supervises Bitvavo's compliance with the Money Laundering and Terrorist Financing (Prevention) Act and the 1977 Sanctions Act. Bitvavo is not subject to the prudential supervision by the Dutch Central Bank or conduct supervision by the AFM. This means that financial requirements or business risks are not monitored and there is no specific consumer protection.
Because current regulations are only the beginning of regulation in the crypto sector, Bitvavo will strive to stay at the forefront of regulatory developments and will continue to actively contribute to these developments.
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