Dutch Crypto Exchange Adds Extra Verification Measures Citing 'Disproportionate' Central Bank Requirements

The exchange said it must now ask users for extra information such as the purpose of bitcoin purchases.

AccessTimeIconNov 18, 2020 at 2:10 p.m. UTC
Updated Sep 14, 2021 at 10:32 a.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Netherlands-based cryptocurrency exchange Bitonic says it has been "forced" to bring in extra verification measures due to requirements from the country's central bank.

  • In a notice published Monday, the exchange said it will now ask users for extra information "such as the purpose with which you intend to purchase bitcoins and what kind of wallet you use."
  • It said it must obtain proof from customers they are the "legitimate owner" of a bitcoin address by uploading a screenshot of their wallets, or by signing a message with the bitcoin address.
  • Bitonic called the requirements "ineffective and disproportionate," saying it had asked multiple times that the central bank remove the requirement.
  • The central bank, De Nederlandsche Bank, is said to be applying the Netherland's Sanctions Act to cryptocurrency exchanges, seeking to ensure their users and transaction beneficiaries are not on a Dutch or European sanctions list.
  • "The Netherlands is currently the only country in the European Union where this far-reaching measure is demanded," the exchange said.
  • It further called for users to "formally object" to the central bank about extra requirements and the collection of the data.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.