Dutch cryptocurrency start-ups struggle with regulations

EU anti-money laundering directive will be valid from January and the Netherlands will make it even more difficult.

According to critics, the regulations could destroy developing cryptocurrency tech start-ups.

The new EU directive is known as Anti-Money Laundering Directive 5 (AMLD5). Member states should proceed based on the directive and fight against money laundering and terrorism financing. However, Dutch Ministry of Finance and its Central Bank are criticized for preparing more difficult legislation than the European directive requires.

Companies including exchange stocks and software developers state that authorities subvert democratic process and try to right past wrongs that have nothing in common with blockchain industry development. Critics say that Dutch Ministry of Finance and Central Bank add up more appendices to AMLD5 without passing it through standard legislative procedure.

According to new rules bitcoin companies should pay their own supervision costs and undergo registration process. Companies consider it hidden (and illegal) licensing and following the useless rules would be expensive. The costs are expected to be €150,000 annually that is likely to be liquidating for small start-ups.

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