The Netherlands was among the first states in Europe to develop crypto regulations on money laundering. All cryptocurrency companies were required to comply with the 5th Anti-Money Laundering Directive (5AMLD). The directive has regulations that require crypto companies to identify themselves and their customers. Before completing any transactions, the Netherlands government required them to provide further information, i.e., proof of ownership of their bitcoin wallets.
Later in May 2020, the Netherlands introduced the crypto regulator De Nederlandsche Bank as a new measure of risk approach. From the above information, truly, the Netherlands is working towards achieving a good market for cryptocurrency trade.
Is Cryptocurrency Legal in The Netherlands?
Yes, cryptocurrency is legal in the Netherlands. However, even though there are no regulations on cryptocurrency trading in the country, the assets are still not legalized as real money. If you’re traveling from a place like Vietnam then it’s a good idea to purchase your cryptocurrency before you travel to the Netherlands. The Ministry of Finance in the Netherlands ensures that all crypto companies comply with the Sanctions Act 1977. The act requires frequent supervision of crypto companies, registration obligations to prevent terrorist financial acts,
Who Regulates Cryptocurrency in the Netherlands?
The Dutch National Bank (DNB) is responsible for regulating cryptocurrency activities in the Netherlands. Together with the Sanctions Act 1977, Dutch National Bank brought up the laws to provide for integrity supervision of all crypto holders. The bank counters money laundering activities, terrorist financing, and other illegal activities that are likely to be associated with the crypto and bitcoin business.
Crypto Travel Requirements in the Netherlands
At the moment, there is no crypto traveling rules in the Netherlands. Nevertheless, all non-custodial wallets should enforce the requirements stipulated in the Sanctions Act. Also, all providers of crypto services must ensure they should comply with the laws. For instance, they should ensure:
- They perform adequate checks
- They know the identities of their business partners
- They should have records of persons or legal entities participating in their business.
Precisely, the information should be as follows:
- The service provider should ensure that personal information such as identity and residence is recorded and screened according to the provided sanction lists. (Note that this is compulsory).
- The service provider should ensure that the recipient gives the correct information about their legal identity. They should be certain that the person is the actual recipient. This requirement prevents risky businesses.
The licensing and registration requirements in the Netherlands only require VASPs to register with De Nederlandsche Bank. Fortunately, there are no licensing and regulation requirements between entities. Crypto companies are only required to complete all the screening activities. The bank promised to put such regulations covering the Crypto Travel Rule later.
Why you Should Consider Joining the Cryptocurrency Market
Even though there are few travel restrictions on cryptocurrency in the Netherlands, numerous wallet identification tools allow crypto users to perform verifications with non-custodial wallets before performing transactions.