Bitconic, the Dutch bitcoin exchange (BTC), has informed users that they must now comply with a new verification measure in order to continue using their services. This change comes following new requirements from the Dutch central bank, which were published in November 2019 and provide for the following:
“Cryptographic service providers should check if their customers and final recipients (UBOs) are included in the Netherlands or Europe sanctions list and report any visits to DNB. Risk-based oversight is not permitted […] Compliance also means that organizations must audit incoming and outgoing remittances. ”
Bitonic has informed customers that they must now provide more details, including the type of wallet they are using. They must also confirm that they are “legitimate” controllers of the Bitcoin address they provide for withdrawing Bitonic funds. To do this, they need to upload a screenshot from their wallet or sign a message.
All these measures, according to Bitonik, “cause inconvenience” and emphasize that we “do not agree with the procedures ourselves.” Crypto journalist Aaron Van Verdom notes on Twitter that the requirements far exceed those of crypto companies in the rest of Europe:
In April this year, as part of the implementation of the fifth European Union Anti-Money Laundering Directive (AMLD5), the Dutch Ministry of Finance instructed the Dutch Central Bank to monitor the digital currency industry in the country. Until then, experts have warned that the Treasury could relinquish its power by appointing an institution to monitor crypto firms.
Dutch lawyer Frank T. Hart said at the time: “This is much more than [AMLD5]. These planned guidelines are unusual.