Several
Dutch cryptocurrency companies, including Bitvavo and Coinmerce (the successor
to Binance in the Netherlands), have won a partial victory in their ongoing
battle against approximately $2.3 million in fees imposed by Dutch regulators.
A
Rotterdam court has ruled that the Dutch central bank (DNB) overstepped its
legal authority when it levied charges on these crypto firms for registration
related to anti-money laundering compliance. The court issued two judgments on
Wednesday. It might have broader implications for the regulation of
cryptocurrencies in the Netherlands.
According
to the court, the DNB’s assessment of registration requests from these crypto
service providers went beyond the scope of what was legally permissible under
European Union anti-money laundering laws.
Specifically,
the court found that “the way in which DNB assesses registration requests
is contrary to the scope of the registration obligation for crypto service
providers.” As a result, the court determined that it was unlawful to
charge supervisory costs to these companies for the year 2021.
However,
the judges clarified that the ruling did not impact the fees imposed for the
year 2020. A separate legal case is still pending regarding the 2022 fees.
Debate Over Operational Costs
and Supervisory Fees for Crypto Firms
The
Netherlands has taken a strict stance on regulating cryptocurrency firms,
leading to substantial fines imposed on major exchanges like Coinbase and
Binance for their failure to register with Dutch authorities.
These
rigid regulations have driven some players, such as the Gemini exchange, to
exit the Dutch market. Binance transferred its Dutch customer base to Coinmerce
as part of its compliance efforts.
Patrick
van der Meijde, President of the United Bitcoin Companies of the Netherlands
(VBNL), an industry group that coordinated the legal challenge, expressed
satisfaction with the court’s decision.
He
noted that the court’s ruling recognized a violation of the registration
obligation as outlined in EU anti-money laundering legislation in the
Netherlands. Van der Meijde also stressed the substantial costs associated with
these fees. It should not have been passed on to crypto companies, as they were
deemed to be beyond the DNB’s mandate.
For
financial regulation in Europe, supervisory bodies are typically funded by the
entities they oversee. The operational costs are allocated based on the size
and complexity of the organizations they regulate. In this…
