Dutch Central Bank Gives First Approval to Digital Asset Exchange
AMDAX has become the first to register with Holland's central bank under recently implemented EU anti-money laundering regulations.
Oct 9, 2020 at 7:39 a.m. UTCUpdated Sep 14, 2021 at 10:06 a.m. UTC
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A cryptocurrency service operating in the Netherlands has become the first such entity to register with the country's central bank.
- Per a company press statement on Wednesday, the Amsterdam Digital Asset Exchange (AMDAX) said the registration with De Nederlandsche Bank (DNB) meant it could now go ahead and process crypto transactions.
- The firm will also be allowed to store and provide custody of digital assets under the European Union’s (EU) newly implemented AML5 guidelines that came into effect on May 21.
- Those guidelines, which some argue are killing crypto firms across the country, passed the Dutch Parliament earlier this year.
- Amsterdam-based AMDAX said it will support private investors with portfolios beginning at 2.5 bitcoin (about $27,000 or €23,000 at press time).
- The Dutch implementation of the regulations is very strict, usually including additional criteria for client assessments and for tracing the origin of money users want to invest.
- DNB "justly applies" these regulations, said Valentino Cremona, co-founder and director at AMDAX.
- With bitcoin often being associated with crime, the market needs a "clear legal framework," Cremona said.
- The exchange's registration with the central bank demonstrates to investors that cryptocurrency is "a mature asset class, not for criminals, but for smart investors," he added.
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