Netherlands-based crypto exchanges are now required by law to get additional information from clients regarding their bitcoin addresses. As part of the new requirements, which went into effect on Nov. 17, clients must now furnish exchanges with reasons why they wish to buy bitcoin. They will also need to inform the exchange officials of the kind of wallet they use.
The new Dutch regulatory changes have gone into effect despite protestations by some of the country’s crypto exchanges. The Dutch Central Bank (DNB), which is enforcing the new regulations, wants crypto service providers to adhere to the provisions of the country’s Sanction Act 1977 just like other “supervised institutions.”
Meanwhile, Bitonic, the Netherland-based crypto exchange that opposes the new requirements, wants clients to support their stance. To do this, the exchange is asking clients “to formally object to these additional measures and the registration of this data.” The Bitonic team says they will soon “release a custom form intended specifically for this purpose.”
Still, in a statement made via the exchange’s blog, the Bitonic team says it will reluctantly comply with the ineffective measure. The statement adds:
We have repeatedly pleaded (with the) DNB to drop this requirement as we find this measure to be ineffective and disproportionate. Unfortunately, this has had no effect. The Netherlands is currently the only country in the European Union where this far-reaching measure is demanded.
Furthermore, the statement informs clients of an additional requirement obliging the exchange to verify if the “legitimate owner of the given bitcoin address” is actually in control of it. To perform this verification procedure, clients will be requested to “upload a screenshot from your wallet, or by signing a message.”
According to the Netherlands’ Sanctions Act 1977, a crypto service provider “must check…