Dutch BTC Exchange Objects Verification Demands For Crypto Users

The Dutch BTC Exchange Bitonic objected to the verification demands for crypto users that were imposed by the Dutch Central Bank which even forced crypto companies to ask for screenshots of their customers’ wallets as reported in crypto news.

However, a  new court order said it was unwarranted. The Dutch BTC exchange Bitonic announced that the recent court order convinced the Dutch Central Bank to withdraw the demand for unlawful and onerous user verification requirements like screenshots. The DNB said in the reply:

“After reconsideration, DNB comes to the conclusion that this interpretation of Article 2, second paragraph, RtSw, given by DNB, does not do enough justice to the discretion that an institution has to implement this standard in a risk-oriented manner. DNB has therefore incorrectly set the registration requirement as a condition for the registration of Bitonic.”

DNB formally acknowledges complaints Bitonic and revokes wallet-verification requirementhttps://t.co/gEaE1P0mqo#bitcoin

— Bitonic (@Bitonic) May 20, 2021

The DNB imposed a new set of rules on the crypto companies in the country that wanted to become officially registered. For example, the bank’s Sanction Act forced the companies to monitor the customers’ withdrawals and request screenshots of their wallets to confirm their identity and the fact of ownership. Bitonic and other companies argued that the measures were not effective while executive editor of CoinPrices.io Matt Odell even called the new requirements as an obvious precursor to proper self custody bans, urging the Bitcoiners to stack while they still can.

Dutch Central Bank lashing out. More friction in the path of bitcoiners who want to self custody. https://t.co/CEK2jShC9K

— Stephan Livera (@stephanlivera) November 17, 2020

Bitonic filed an objection with the Dutch court and took the crypto industry’s side. The court order suggested that the Dutch supervisor should motivate the registration decision better:

“This means that we will remove the wallet verification measures as soon as possible. For example, we will no longer ask for all transactions a copy of your wallet screenshot. We will further investigate which other simplifications are possible. We are pleased that this relieves our customers of an unlawful and onerous procedure.”

As reported previously, Thailand’s regulators also decided to impose stricter rules on the know-your-customer requirements for the crypto companies that will potentially force the traders to be physically present once they open their accounts.

Source: https://www.dcforecasts.com/bitcoin-news/dutch-btc-exchange-objects-verification-demands-for-crypto-users/