Dutch crypto license in Q1 2019

The Dutch Central Bank (DNB) wants to regulate crypto companies to prevent money laundering. These companies will require a license to operate. A license can only be obtained when the crypto businesses know the identity of their customers and report any unusual transactions. Businesses that influenced by these regulations are allowed to speak their mind. Implementation of the law could come as early as the first quarter of 2019.

It’s part of an EU wide operation to get more insight in crypto traffic across the European Union. The limitation of the law are rather loose, as any “digital representation” that can be “transferred, stored and traded electronically” will fall under the new law.

For this regulation to be applied, it first needs to be approved by the government. All these rules are part of a new law proposal to minimize the risk on money laundering. These rules would not only be applied to crypto companies, but also to the trade of art and real estate businesses.

DNB isn’t the first Dutch government body coming up with ways to regulate crypto currencies. The Netherlands Authority for the Financial Markets (AFM) earlier stated that CombiCoin from fintech company Triaconta was in violation with the Dutch Financial Supervision Act. CombiCoin functioned too much as an investment fund, and would require a license… something Triaconta never had.

Overall, The Netherlands is very embracing towards the cryptocurrency business. The Dutch are well aware that banning crypto has no use, and therefore chose the path of regulation. Income from crypto is currently taxed under box 3. Which means 30.000 EUR of your crypto income is tax free, and above that you will pay scaled taxes based on your income. Generally this means your crypto income is taxed 0.5~2%.

Originally published at NEDEROB.