The AMLD5 regulations approved by the EU are considered to be quite strict, which cast many doubts over the future of digital asset firms operating in the region. However, Nederlandsche Bank NV (DNB), the Netherlands’ central bank, has approved AMDAX BV as the first digital asset firm to operate under its jurisdiction.
The authorities’ approval is a first of its kind since the latest AMLD5 regulations came into force. Many existing crypto firms had to either close their operations or move their business outside of the Netherlands. Deribit, a popular derivative exchange, was among those who had to shut down its operations because of the newly enforced laws.
As per an official briefing dated October 7, AMDAX BV, an Amsterdam-based crypto service provider, would now offer its services to the Dutch residents. The company in its official statement said,
“AMDAX B.V. has been registered by De Nederlandsche Bank (DNB) as the first provider of crypto services in the Netherlands. This enables AMDAX to process crypto transactions and store cryptocurrencies.”
Ever since the enforcement of newly updated anti-money laundering rules called 5th Anti-Money Laundering Directive, or AMLD5, companies must register with the regulatory body. Only after their approval, they can offer their services to the customers. The registration for support started in January 2020, and AMDAX B.V has become the first firm to get the regulatory nod.
AMDAX B.V to Cater to the Needs of Retail and Institutional Investors
AMDAX B.V would be catering to the needs of both retail and institutional investors. The digital asset firm started working towards AMLD5 compliance back in May. Valentino Cremona, AMDAX BV co-founder, commented on their regulatory approval and said,
“The market needs clear legal frameworks, such as the set of requirements of DNB. This registration shows investors that crypto is a mature asset class, not for criminals, but smart investors.”
“All crypto companies need to get this registration. Without it, they cannot operate in the Netherlands. The other Dutch crypto companies have up to November 21st to receive registration.”
The approval of DNB for AMDAX BV shows that digital asset firms can still get the regulatory nod despite the stricter regulations.