Dutch Central Bank calls for stricter cryptocurrency regulations
The Dutch Central Bank, De Nederlandsche Bank (DNB), is calling for tougher regulations on cryptocurrency companies. The bank believes the anonymous nature of cryptocurrency exchanges makes them a safe haven for money laundering and terrorism funding.
According to Dutch newspaper, De Telegraaf, DNB claims that requiring crypto companies to acquire a license to operate will aid in deterring money laundering, as well as other forms of fraud. A condition for the license would require crypto companies to report any suspicious transactions they encounter. A similar regulation was instituted in Japan last year, and although it significantly increased the amount of suspicious transaction reports, it didn’t seem to deter money laundering.
Cryptocurrency security firm CipherTrace released a report stating $1.2 billion had been laundered through international exchanges between 2017 and 2018. In the first half of 2018 nearly three times as much cryptocurrency was stolen compared to the entirety of 2017. The Financial Crimes Enforcement Network (FinCEN) plans on enforcing Anti-Money Laundering (AML) regulations throughout the globe. DNB’s regulations paired with FinCEN’s efforts hopefully will lower money laundering rates not only in the Netherlands, but throughout the globe.