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Cryptocurrency service providers will require licenses by the Dutch Central Bank

De Nederlandsche Bank (DNB), the central bank of the Netherlands will soon issue licenses to cryptocurrency service providers, as reported by DeTelegraaf a Dutch news outlet, on December 11.

The motive behind this licensing requirement is to “help prevent such virtual coins being used to launder criminal money or to fund terrorism,” stated DeTelegraaf.

In order to avail the license, the cryptocurrency providers have to keep a record of their customers and report unusual transactions, if any. The same will be monitored by De Nederlandsche Bank.

Despite the country being conducive to the emergence of decentralized currency, the DNB’s approach has not been very receptive. The central bank conferred, back in November, that cryptocurrency was “not real money,” with the divisional director of the bank, Petra Hielkema stating, “If something wants to be treated as money, you have to be able to spend, save and calculate with it.” She further went on to highlight the inability of using cryptos in retail outlets and for saving purposes.

Wopke Hoekstra, the Dutch Finance Minister had earlier called for continental and international measures to tackle the risks linked with cryptocurrencies. He proposed a ban on advertisements that lure customers to invest in such a highly-volatile product.

However, the country and its citizens are very crypto-positive as there aren’t many stringent regulations in place that prevents the use of digital currencies. Moreover, they have a “Bitcoin-city,” Arnhem, which has the highest rates of crypto-adoption among merchants where Bitcoin can be used to buy anything from bread to beer.

The Netherlands has also seen several used cases for blockchain, the underlying technology behind cryptocurrency. Albert Heijn, the country’s largest supermarket is employing the use of blockchain to increase the transparency of its orange juice production One of the country’s prime ports and one of the biggest in Europe, the Port of Rotterdam, has established a partnership with Samsung and a Dutch bank to use blockchain for shipping.

 

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