The central bank of Netherlands reverse its decision on crypto withdrawals

The central bank of the Netherlands, DNB, has changed its decision to tighten the rules on withdrawals from cryptocurrency exchanges due to concerns that the measures would lead to unnecessary violations of customer privacy. Earlier this year, the central bank released new rules for cryptocurrency exchanges that required them to collect more personal user information at the time of withdrawal.

Earlier, the Dutch government asked cryptocurrency exchanges to tighten KYC rules.

As previously announced by the cryptocurrency exchange, they were asked to search for more personal data of users at the time of withdrawal. In addition to providing the recipient's address, users would also be required to provide a photo for verification proving that they own the address. The proposals, however, met with consternation by the cryptocurrency community in the Netherlands, with objections reported to the bank, including from the local Bitonic exchange. Nevertheless, both Bitonic and Bitstamp have started to enforce new rules on customer payouts.

In a submitted statement of opposition, the Bitonic cryptocurrency exchange stated that the requirements were unnecessary and go far beyond what is required to achieve the goals of the central bank. "Apart from the fact that verifying each address for each transaction has no technical advantage, it is also a serious violation of our clients' right to privacy," said Ceo of the Bitonic exchange. Consequently, a judge in Rotterdam ruled that the objection was well founded and that the central bank should consider the objection and react accordingly within six weeks. Reversing its earlier position, DNB said the measures were not sufficient to recognize which institution must implement this standard in a risk-oriented manner.