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The Central Bank of the Netherlands requires exchanges to implement additional user verification measures

The Central Bank of the Netherlands requires exchanges to implement additional user verification measures

The Dutch cryptocurrency exchange Bitonic was forced to implement additional user verification measures due to the requirements of the country’s Central Bank.

In a notice published this week
Bitonic said that it will now ask users for additional information, such as the purpose of buying crypto assets and information about the wallet used.

According to the statement, the exchange must obtain proof from customers that they are the “rightful owners” of the BTC address. Users must confirm this by uploading a screenshot of their wallet or signing a message with a BTC address. Bitonic executives called the requirements “ineffective and disproportionate,” saying they had repeatedly asked the Central Bank to cancel them.

De Nederlandsche Bank NV (DNB), the Central Bank of the Netherlands, applies the Sanctions Law in the Netherlands to cryptocurrency exchanges to ensure that their users and beneficiaries of transactions are not included in the sanctions list of the Netherlands or the European Union.

“The Netherlands is the only country in the European Union that sets such requirements for exchanges,” says Bitonic.

The exchange called on users to “officially express their disagreement” with the Central Bank’s position on additional requirements and data collection.

As of the first half of November, thirty-nine cryptocurrency companies have applied for registration with the Central Bank of the Netherlands, including cryptocurrency exchanges and cryptocurrency wallet operators. In the spring, it was reported that the tightening of regulation in the Netherlands may lead to the closure of cryptocurrency companies. Last month, the Central Bank of the Netherlands issued the first license to the cryptocurrency startup AMDAX BV.