Dutch Crypto Company Secures Legal Victory Over $2.3 Million Regulatory Bill – Blockchain News, Opinion, TV & Jobs

In a significant legal development, Dutch cryptocurrency companies including Binance successor Bitvavo and Coinmerce have won their battle against a hefty $2.3 million fee imposed by Dutch regulators. The Rotterdam court ruled that the Dutch National Bank (DNB) exceeded its legal powers by charging the companies with anti-money laundering registration.

The court’s ruling, handed down on Wednesday, declared that DNB’s assessment of registration requests went beyond the scope of registration obligations imposed on cryptocurrency service providers under European Union anti-money laundering rules. The court also emphasized that existing cryptocurrency regulations do not allow it to lawfully impose 2021 supervision fees on cryptocurrency service providers.

However, it is important to note that the court’s ruling will not affect costs incurred in 2020. A separate legal proceeding is underway to resolve the 2022 fees.

The Netherlands, which is preparing to implement the European Union’s strict cryptocurrency asset market licensing regime, has maintained a strict stance on cryptocurrency companies. This includes imposing significant fines on Coinbase and Binance for failing to register. Notably, cryptocurrency exchange Gemini recently announced its withdrawal from the Dutch market due to the strict regulatory environment, while Binance transferred its Dutch customers to Coinmerce.

Patrick van der Meijde, chairman of the Dutch Bitcoin Association (VBNL), the organization leading the lawsuit, expressed satisfaction with the court’s decision. “We are pleased that the court has ruled that the registration obligations set out in EU anti-money laundering law have been breached in the Netherlands,” he said. Van der Meijde emphasized that the enormous costs associated with this registration should not be passed on to DNB as it is beyond its jurisdiction.

In response to the ruling, a DNB spokesperson confirmed that it was aware of the decision and would engage in further consultations with the Treasury to resolve the matter. The spokesperson asserted that the central bank has consistently complied with Dutch laws and regulations and reiterated that the ruling reaffirms its authority to provide effective money laundering supervision for the cryptocurrency sector and other financial institutions.

It is important to note that financial regulators in Europe generally do not rely on taxpayer funding, but instead impose operating costs on the bodies they supervise in proportion to their size. As van der Meijde points out, total cryptocurrency supervision fees in 2022 reached €2.2 million ($2.3 million), and this figure is expected to increase every year.