BLOX, a crypto exchange based in The Netherlands is now one of only three officially recognized platforms by the Dutch Central Bank (DCB) as the registration deadline inches closer.
BLOX Added to DCB Registry
In a press statement issued via its Medium page, BLOX announced its addition to the DCB registry. Following anti-money laundering (AML) amendments passed earlier in the year by the Dutch parliament, crypto exchanges must now be registered with the central bank to operate in the country.
Commenting on the DCB license, Mark Bakker, head of legal at the company revealed that the approval was a testament to how the market has evolved from a regulatory standpoint. According to Bakker, Bitcoin (BTC) represents a “technological and economic innovation.”
According to BLOX, the DCB approval might have profound implications for crypto adoption in The Netherlands. The platform allows cryptocurrency trading for a minimum deposit of €1.
Apart from BLOX, two other crypto exchanges — AMDAX and Anycoin Direct — also received operating licenses from the DCB. According to Anycoin co-founder Julian van der Wijst, the DCB approval could hold the key for more institutional participation in the cryptocurrency market.
Strict Crypto Laws in the Netherlands
Back in Sep. 2019, BeInCrypto reported plans to bring the crypto market under the supervision of the DCB. At the time, the move was part of efforts by the country to adopt provisions of the fifth European anti-money laundering directive (AMLD-5).
Indeed, ramblings over the new stricter crypto regulatory regime has seen some exchanges like Deribit moving out of the country. Critics say the compliance costs associated with these new measures are beyond the means of smaller and medium-sized platforms.
For exchanges looking to remain in the country, the registration process appears to be proceeding slowly. Of the 38 applications received by the DCB, the central bank has only approved three companies. The deadline for registration is Nov. 21.
Exchanges that fail to meet the registration deadline will reportedly receive cease and desist orders. The DCB may also issue fines as well as other enforcement actions.