Dutch Central Bank Gives First Approval to Digital Asset Exchange

Amsterdam, The Netherlands

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.

See also: The Netherlands’ AMLD5 Interpretation Appears to Be Killing Crypto Firms

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