According to the recent reports, a Bitcoin (BTC) exchange based in the Netherlands has filed a preliminary injunction at the Rotterdam court. In the filed injunction, the exchange has requested the central bank to reconsider the recent implementation. The recent implementation was ruled by the central bank of the Netherlands, adding more requirements for wallet-verification.
In the filing, the firm has argued that the recently passed ruling lacks a proper legal basis for the additional know-your-customer (KYC) rules.
As per the Bitcoin (BTC) exchange, the announcement and requirement made by the central bank of Netherlands over the KYC policy is harsh. The exchange is of the view that the new requirements added to the KYC policy breach the privacy of the users.
According to the recent ruling, the cryptocurrency exchanges are to ensure the history and track record of their clients. The ruling requires the exchanges to gather full information of the users and check if they are on the European or Dutch sanctions list. If the exchanges establish that the users are indeed on the sanctions list, then they must report them to the DNB.
Furthermore, the new ruling also requires the exchanges in the Netherlands to verify and check every outgoing and incoming payment transfer.
The name of the Dutch Bitcoin exchange is Bitonic that is already registered to provide cryptocurrency services to the users by DNB. At the time of registration, it was made clear by DNB that Bitonic was required to comply with the new measures that had recently been introduced. However, the exchange stated that it disagreed with the new measures stating it will not follow them.
Even at the time of registration, the firm announced that it was going to ask the questions to clients that it deems necessary. It announced that it was going to ask for additional information such as the wallet they were going to use and the purpose of purchasing Bitcoin (BTC).
Furthermore, Bitonic stated that it was going to verify if the client is the rightful owner of the Bitcoin (BTC) address. The firm would also require the investors to provide a screenshot of their Bitcoin (BTC) wallet, or sign a message sent by the firm.
In the light of the above, the firm has completely denied compliance with the new regulations. The firm has stated that it did not even receive a clear answer or explanation from the regulators for the implementation of the new policy.
The firm had also sent a letter over to DNB requesting their response on the matter and the questions they had to ask but they are yet to get any response from them.
However, the Dutch regulators have clarified and provided a clear explanation of why it has decided to implement the KYC and AML regulations. The regulators stated that with the implementation of these policies, they aim to prevent money laundering and terrorist funding.