Amdax BV becomes the first company providing financial services with cryptocurrencies and digital assets to receive approval from the Dutch Central Bank to offer its services under this jurisdiction.
With the approval of the Dutch Central Bank, the The Dutch Central Bank (DNB), Amdax BV se convert the first crypto service provider to legally operate in this country, under the regulations of the Fifth European Union Directive (5AMLD) against money laundering. Amdax BV is a company that provides financial services with cryptocurrencies, and digital assets, and offers a portfolio to its clients and investors from 2,5 Bitcoin (BTC). Now, with the approval from the DNB, the company will be able to start processing crypto transactions and storing cryptocurrencies legally and safely, offering its services to thousands of clients and users in the region.
“AMDAX BV is the first crypto service provider in the Netherlands registered (number R166879) with De Nederlandsche Bank NV (DNB).”
The approval of services by the entity offers an optimistic outlook for cryptocurrency companies, after in May De Nederlandsche Bank gave them an ultimatum to register with the entity or cease operations within the Netherlands. De Nederlandsche Bank's strict measures are based on the regulations of the European Union's Fifth Anti-Money Laundering Directive. Since the country adopted the 5AMLD and other strict regulations, a large number of financial services companies with cryptocurrencies began to leave the territory, looking for jurisdictions with much friendlier regulations for the development of their services.
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4 months into the registration process
In the statement, the company indicates that the registration process with the entity took just over 4 months, starting on May 21 and ending in early October. This process, compared to other jurisdictions, was quite fast and represents an important step towards the consolidation of a more mature and efficient crypto space in the Netherlands. Compliance with European 5AMLD regulations guarantees and increases transparency and reliability in a sector such as cryptocurrencies, which is in full growth and development.
Furthermore, although Amdax BV is the first company to receive approval from the DNB to operate in the Netherlands, other similar companies are awaiting approval from the entity to provide their services in the country. These companies have until November 21 of this year to receive approval for their services and operations.
Strong regulations for crime prevention
In the Netherlands, authorities have been tightening their regulations for the prevention of financial crimes, such as anti-money laundering and money laundering, in recent years. Now, with the adoption and implementation of the EU 5AMLD, quite strict additional requirements for investment control apply in the country, including requirements for the evaluation of clients and investors, and monitoring tools to trace the origin of funds that clients and users wish to invest.
Still, while for many companies the regulations are “too harsh,” such as Deribit which closed its operations in the country earlier this year, AMDAX BV co-founder, Valentino Cremona, says that these regulations are necessary to ensure smart investment within crypto spaces and prevent cybercriminals and criminals from taking advantage of new technologies and misusing them to undermine their potential.
“This record shows investors that crypto IS a mature asset class, not for criminals, but for smart investors.”
The company's co-founder said he is very proud to have met all the requirements to obtain approval from the entity, and to be the first crypto company to operate legally in the Netherlands. Cremona said that Bitcoin is a transparent cryptocurrency, which is wrongly associated with illegal activities, but that with the approval of the Amdax BV registration, and compliance with current regulations, it can offer a safe and reliable alternative for private investors and financial institutions that are interested in entering and investing in the world of cryptocurrencies.
Bitcoin and Blockchain in the Netherlands
In the Netherlands, Bitcoin is not classified as money by De Nederlandsche Bank (DNB), but its use is not prohibited in the country. Citizens can use this cryptocurrency to purchase basic goods and services.
As for the blockchain, the government and private industry are showing great interest in adopting this technology. In fact, in the Netherlands there are several large-scale projects using this technology, such as the platform VirusBlockchain.com, developed by the Public Health Blockchain Consortium (PHBC) to track the mobility of healthy people and prevent infection by COVID-19; and the platform Known Traveler Digital Identity (KTDI), designed by the WEF organization, so that users can travel between the Netherlands and Canada without needing a passport.
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