A Cryptocurrency Exchange from Netherlands Tightens Rules against Users Following the Instructions from the Dutch Central Bank

In the past couple of years, the entire Europe has started seeing and making a lot of growth in the cryptocurrency industry. Many countries from Europe have started regulating cryptocurrency-blockchain technology to make the best use out of it.

However, all of these developments have been made following the establishment of a regulatory infrastructure. There are many European countries that have now started enforcing/implementing regulations over cryptocurrencies.

Majority of the European countries are focused on implementing and regulating the KYC and AML policies. This is to ensure that none of the users using the crypto-exchanges are involved in any terrorist or money-laundering activities.

Quite recently, a cryptocurrency exchange based in Netherlands came into the spotlight for the Dutch Central Bank. The cryptocurrency exchange made an announcement that gave birth to a lot of concerns among the users of the exchange.

On the 17^th of November, 2020 the Dutch crypto-exchange ‘Bitonic’ notified all its users of an update. It updated its users that all members of the exchange will have to go through a verification process. The exchange announced that is a mandatory measure if the users wish to keep using the services.

The exchange confirmed that they have made this announcement following a new regulation put in place by the Dutch Central Bank. As per the update, all users trading through any crypto-exchange in Netherlands would have to go through a proper verification process.

The exchange ‘Bitonic’ advised their users that they now have to provide the details of the wallet that they use. On top of that, the users will also be required to provide prove their legitimacy of controlling the address of the Bitcoin (BTC) they use.

The exchange stated that the users will have to prove their Bitcoin address legitimacy in order to be able to make withdrawals from Bitonic. In order to do this, the users will be required to either sign a message or upload screenshot of required details from their wallet.

However, Bitonic has expressed its own perspective regarding the recent implementations by the Dutch Central Bank. The exchange has expressed displeasure stating these new rules are emphasizing, a nuisance, and they do not agree to these implementations themselves.