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A Rotterdam court ruled against the Dutch central bank’s attempt to impose an exorbitant $2.3 million supervision bill on prominent crypto companies, Bitvavo and Coinmerce (Binance’s successor). The court deemed the central bank’s demand for money laundering registration fees as overreach, highlighting their infringement on the boundaries set by the European Union’s anti-money laundering laws.
The Supervision Bill Imposed on the Dutch Crypto Companies
While the court acknowledged the legislation adhered to general norms of good governance, it unequivocally concluded that the central bank had no legal right to force crypto service providers to bear the financial burden of supervisory costs related to 2021. However, it is vital to note that this ruling solely affects costs for the current year, while separate legal proceedings are still underway concerning fees for 2022.
Also Read: Bank of Portugal Governor Calls for Crypto Regulation
The Netherlands, as it aligns with the rigorous Markets in Crypto Assets licensing regime endorsed by the European Union, has maintained a stringent approach toward crypto companies. Evidenced by its hefty fines imposed on Coinbase and Binance for failure to register, the country’s regulatory measures have instigated the exit of Gemini exchange and necessitated Binance’s transfer of Dutch customers to Coinmerce.
Commenting on the decisive court ruling, Patrick van der Meijde, president of the United Bitcoin Companies of the Netherlands (VBNL), expressed his satisfaction. He called it tangible proof of the Dutch central bank’s breach of its obligations according to EU anti-money laundering legislation. Furthermore, van der Meijde emphasized that the costs resulting from this breach should not have been shifted onto the companies, as they fall far beyond the scope of the central bank’s mandate.
Also Read: Crypto Regulation Doesn’t Have to be “Perfect”-Solana Co-Founder
Financial Regulations in Europe
In Europe, financial regulatory bodies traditionally allocate operational costs to supervised entities based on their size, rather than relying on taxpayer funding. The cumulative supervisory bill for the crypto industry in 2022 tallied an impressive 2.2 million euros ($2.3 million). With an annual increase anticipated, van der Meijde foresees mounting financial burdens on crypto companies.
While this ruling offers transient respite to Dutch crypto companies, it paves the way for a potential reevaluation of the Dutch central bank’s onerous registration prerequisites. Nonetheless, with ongoing legal battles and the impending introduction of the EU’s arduous licensing framework, the regulatory landscape for crypto enterprises in the Netherlands remains uncertain.
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