Crypto Services Approved Under AMLD5 Regulations by the Dutch Central Bank
De Nederlandsche Bank NV (DNB) has permitted AMDAX BV the Central Bank of Netherlands to operate in its jurisdiction. It is for the first time that the state has approved a crypto company under stringent new regulations due to which many crypto businesses shut down or left the Netherlands too.
AMDAX BV is an Amsterdam-based cryptocurrency which can provide access to the Dutch residents to its digital asset offerings after receiving official registration from the regulatory authorities, as briefed by Finextra on October 7, 2020.
The digital asset company also interacted with Cointelegraph and said that DNB bank has registered AMDAX BV for digital assets services in the country.
The Dutch central bank has approved the first digital asset company under strict new regulations that saw many crypto-related businesses close https://t.co/jADDPyfZr3
— Cointelegraph (@Cointelegraph) October 9, 2020
Abiding by the European Union regulations in the Netherlands is mandatory for fintech companies, and these regulations have become more robust over the years including the 5th Anti-Money Laundering Directive or AMLD5.
The DNB invited crypto companies to register with the bank back in September 2019, noting the starting point of request approval in January 2020. Finextra reported that AMDAX BV began its AMLD5 approval journey in May this year. Although many agencies in the crypto industry were operating in the Netherlands, the stricter AMLD5 laws led to discontinued operations of the majority of the companies. AMDAX BV is the first to register under the new AMLD5 regulations.