The Dutch Central Bank Takes a Tough Stance on Bitcoin

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Starting from January 10, 2020, the Dutch Central Bank will require all providers of services to the Netherlands to self-register at the bank. The bank backed up the controversial decision citing new European anti-money laundering laws. All crypto firms that offer their services to Dutch players must now be registered with the DNB, even those based outside of the Netherlands. The law doesn’t specifically talk about Bitcoin casinos, but since it applies to firms offering services via the web, it doesn’t spell good news for Bitcoin gambling in the Netherlands.

The European Country is Not That Fond of Cryptocurrencies

This isn’t the first time the Netherlands has tried to restrict cryptocurrencies. Back at the beginning of the year, the Dutch government talked about plans for a crypto licensing scheme that is supposed to prevent terrorism financing and money laundering. At that time, the nation’s central bank suggested that fiat-to-crypto exchanges must be licensed as Bitcoin and other cryptocurrencies possess high financial crime risks.

After pushing for such a law, it is now finally coming into the spotlight in a bit different form. The new law goes live on January 10 and requires all persons or firms that convert crypto to fiat currencies to register with the De Nederlandsche Bank. This includes firms outside the Netherlands that serve Dutch people. And, yes, that includes services provided via the Internet, so you can see what this means for Bitcoin gambling in general.

A DNB representative said that it is irrelevant where the company is based. If it wants to stay on the market and do business, it must self-register with the bank. This goes against the whole nature of cryptocurrencies and Bitcoin gambling in general. The blockchain is an anonymous ledger and that was one of the biggest advantages of Bitcoin gambling. However, with the new European money-laundering laws and the Netherlands toughening its stance on cryptocurrencies, the Bitcoin gambling market is about to get a serious hit.

The Dutch Government is Aggressive on Online and Bitcoin Gambling

The Dutch government was never that fond of online gambling. In recent years, it tried to ban all forms of online gambling when it realized it can’t police the Internet on its own. A long list of blacklisted sites was created, and Dutch banks were ordered not to do business with online casinos. Of course, such a thing didn’t happen.

In 2015, the Netherlands updated its laws on online gambling, passing a proposal that hit all casinos with a tax levy of 29% flat to the protests of many operators. It was another nail in the coffin for online gambling in the Netherlands whose strict stance on gambling doesn’t seem to let up.

New online gambling licenses in the European country won’t be approved until 2020. The Remote Gambling Act isn’t expected to go live until January 2021 at the very least, spelling bad news for thousands of eager players. However, experts are hoping that pressure from the EU can loosen the stance a bit. We’re hoping that the government relaxes about cryptocurrencies as well.

September 4, 2019: • No Comments

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