de nederlandsche bank

Dutch Central Bank Aims to Play Leading Role in Developing CBDC in Europe as Part of Plan to Become Increasingly Digital

The Dutch central bank, De Nederlandsche Bank made an announcement in its bulletin, saying that it aims to become the European leader in the development of central bank digital currencies (CBDCs). The report highlighted that the topic of CBDC has gained more public exposure in the Netherlands than in “several other euro area countries for several reasons.”

The Dutch central bank has a positive outlook on CBDCs, as it believes that central bank money is essential to preserve as it is important for people to maintain essential trust in the monetary system.

The European Central Bank (ECB) previously expressed its interest in launching a digital Euro and stated that they have been doing theoretical research and practical experimentation. The report stated that the Netherlands could be a suitable testing ground for its testing. Even after evaluating the potential risks of CBDCs, the Dutch central bank said, “We are ready to play a leading role.”

The central bank emphasized that the use of cash is declining in the country, signaling that its citizens are using less central bank-issued currency for purchases. A CBDC could potentially allow more diversity in the payments market, as well as making cross-border payments to be more efficient, according to the central bank.

Similar to other countries in its catalyst for development for the digital payments, the report stated, “Many stores now ask clients specifically not to pay in cash, which effectively means that only private money is accepted. Due to the coronavirus pandemic, using cash has become more risky due to its risks of transmission.

However, the Dutch central bank was not included in the working group formed by six central banks to share experience on use cases on CBDCs. The six central banks were: the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Sveriges Riksbank, Swiss National Bank, and the Bank for International Settlements.

Sweden’s central bank has also started testing an e-krona, its CBDC to be run on blockchain, to simulate everyday banking activities, including payments, deposits, and withdrawals from a digital wallet on a mobile phone.

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Dutch Central Bank Forces Crypto Firms to Register Within Two Weeks or Face Cease and Desist

The Dutch Central Bank, De Nederlandsche Bank (DNB) has announced that crypto companies must register with the authority by May 18, or to stop operating immediately.

DNB has enforced the Dutch anti-money laundering (AML) laws, which was passed by the Dutch Parliament in April to comply with the Fourth Anti-Money Laundering Directive (AMLD4) laws. The Dutch AML laws are in compliance with the Financial Action Task Force-recommended AML directives and standards.

The AMLD4 laws were amended on April 21 by the Dutch Upper House, which states that firms that offer services to convert crypto and fiat, and crypto custody services must cease and desist if they do not register with the central bank by the deadline. The report did not make it clear regarding why the Dutch Central Bank decided to cite the European’s AMLD4, rather than the most recent directive, the AMLD5.

A draft application could be sufficient to fulfill the registration requirements by May 18, according to DNB’s announcement. The tight two-week notice may have been implemented due to the fact that the Dutch Parliament did not strengthen its AML laws until April 21, although the EU released its fifth EU AMLD in September last year, and all EU members had until early January to implement the directive.

Dutch central bank aims to play a leading role in developing CBDC in Europe

DNB made an announcement in its bulletin, saying that it aims to become the world leader in the development of central bank digital currencies (CBDCs). The report highlighted that the topic of CBDC has gained more public exposure in the Netherlands than in “several other euro area countries for several reasons.”

ECB encourages a robust regulatory structure for stablecoins

The European Central Bank (ECB) published an in-depth report on global stablecoins, focusing on highlighting the requirement for clear regulatory parameters for stablecoins, and the risks it may pose to financial stability. The ECB suggests that a “robust regulatory framework” must be established to address risks before its benefits could be explored.

The ECB recognizes that stablecoins could potentially improve the efficiency of the financial sector and access to financial services across the globe. Comparing stablecoins to cryptocurrencies such as Bitcoin, stablecoins could provide an alternative to volatile cryptocurrencies. The report stated, “A typical stablecoin arrangement (made up of the coin itself and the associated transfer platform and ancillary functions) seeks to reduce price volatility by anchoring the coin to a “safe” low-volatility reference asset or basket of assets.

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Binance Exchange Fined €3.3M by Netherlands' DNB

The Central Bank of the Netherlands, De Nederlandsche Bank (DNB), has fined Binance Exchange €3.3 million for allegedly operating a crypto trading service without receiving the appropriate authorization.

According to the DNB, the offence was committed from May 21 2020 to Dec 1, 2021. The apex bank noted that by failing to register in order to be guided by the Money Laundering and Terrorist Financing (Prevention) Act (Wwft), Binance received a lot of competitive advantages as it did not pay any fees.

“Binance has a very large number of customers in the Netherlands,” the press release from the DNB reads. “In addition, Binance has enjoyed a competitive advantage because it has not paid any levies to DNB and has not had to incur other costs in connection with ongoing supervision by DNB.”

With the fines for related offences up to 4 million euros, the DNB said the 3.3 million euros fine was that huge based on the length of time the exchange operated without oversight. The apex bank argued that Binance’s actions could permit criminal actors to thrive on its platform as the exchange will not be able to report suspicious money transactions to the FIU-NL.

Despite the sanctions, De Nederlandsche Bank said Binance has acted in good faith as it cooperated with the investigators and has also applied for licensing proper, a move that made it issue a fair discount in the final levied fine.

“DNB has moderated the fine by 5%, partly because a registration application has now been submitted and because Binance has been relatively transparent about its business operations throughout the process. This registration is currently being assessed by DNB,” the DNB said.

The DNB introduced the guides for crypto service providers to apply for licensing or to cease and desist from operating on its shores. The apex bank granted its first-ever license back in October 2020, with Amsterdam Digital Asset Exchange (AMDAX) being the first firm to benefit.

Coinbase Secures Registered VASP from Dutch Central Bank

Nasdaq-listed digital currency trading giant Coinbase Global Inc has announced its official registration as a Virtual Asset Service Provider (VASP) with the Dutch Central Bank (De Nederlandsche Bank — DNB).

The exchange is currently listed in the DNB’s register as a crypto service provider and will ply its trade in compliance with all the country’s relevant laws. According to the trading platform, the license will enable it to offer its full suite of crypto products that will make it serve both its retail and institutional clients in the country.

The exchange said it welcomes functional regulations and it’s happy to operate in the Netherlands as it can build products through well-guided innovations.

“As part of Coinbase’s ambition to be the world’s most trusted and secure crypto platform, we have taken strides to work collaboratively with government, policymakers, and regulators to shape the future in a responsible way. Coinbase prides itself on being a compliance-led business. The Netherlands is a critical international market for crypto, and I am really excited for Coinbase to bring the potential of the crypto economy to the market here,” said Nana Murugesan, Vice President, International, and Business Development at Coinbase.

Besides being one of the oldest and the few publicly listed crypto trading outfits around, Coinbase Exchange is setting the pace in terms of aggressive entry into new markets, particularly in Europe.

Back in July, the digital currency trading platform secured the license to operate in Italy from the Organismo Agenti e Mediatori (OAM). While the license grants access to entire countries in the European Union, Coinbase has shown it prefers a more customized local regulation embrace.

The move from Coinbase to explore the Italian market is also similar to those from competitors like Binance exchange and Crypto.com. However, while Coinbase has secured the license from the DNB, Binance’s application is still under consideration after the firm was fined €3.3 million back in July for operating in the country without prior registration.