It appears that the Netherlands is at loggerheads with cryptocurrency companies over the interpretation of the new AMDL5, which was passed by the EU to member states. One of the major bone of contention in this law is the supervisory structure in the Netherlands, which mandates cryptocurrency exchanges to pay for the cost of supervising their businesses.
The AMDL5, which was passed by the EU recently, has had various interpretations and implementation by member states, with some stretching the boundaries of adequate supervision. According to local crypto firms, the application of the law in the Netherlands appears to single out the operations of cryptocurrency exchanges, while giving less attention to other financial institutions like credit card and trust fund companies.
How does this law impact crypto firms in the Netherlands
One of the significant differences in interpretation of the AMDL5 law in the Netherlands is the payment of supervisory cost, i.e., the crypto firms will be required to pay the appointed regulatory body, the cost of supervision.
Each firm will pay fees according to their market share. This arrangement means that those with more turnover and businesses will need more supervision, and hence will pay more in supervisory cost.
However, the firms are not willing to accept the proposal of the ministry of finance, alleging that it is discriminatory in singling out crypto firms from other financial institutions with equal or more risk of money laundering. As of result of this situation, some firms companies have already started making plans to move their operations to more a more welcoming environment. Deribit, one of the crypto firms in the country, relocated their operations to Panama while the law was still undergoing review in parliament.
The Netherlands recently stated that they are willing to pilot the test of a CBDC within their borders, including those issued by other EU firms. While this move may portray the country as very receptive for cryptocurrency trading, the recent interpretation of the AMDL5 may send mixed signals to potential investors.
Source:Coindesk
