Cryptocurrency

Netherlands prepares to license digital currency exchanges

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The Dutch financial authorities are looking forward to licensing crypto currency exchanges and wallet services to prevent money laundering and terrorism financing.

The Dutch financial authorities are looking forward to licensing crypto currency exchanges and wallet services to prevent money laundering and terrorism financing.

The Dutch Central Bank and the Authority for Financial Markets have stressed this week on the necessity of regulating cryptocurrency trading as it includes high financial crime risks.

The report pointed out that the risks posed by digital currency trading should be effectively dealt with through international coordination of countermeasures provided by AMLD5 of the European Anti-Money Laundering Act.

Regulatory authorities in the Netherlands have indicated they will adjust the European framework for SMEs financing in order to deal with crypto assets as stocks or bonds.

The Dutch authorities prefer to deal with digital currencies by establishing a license to regulate the transaction rather than simply registration, since the license ensures that the parties involved in the trading will be bound by the laws set by the relevant authorities, but the registration is less effective because it provides a limited assessment to parties operating in the crypto market.

The price of Bitcoin stabilized near $3,584.31, Ripple slumped 1.22 percent to $0.3173 and Ethereum fell 0.15 percent to $117.45, according to CoinMarketCap.

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