Dutch Central Bank regulates crypto companies to cut down on money laundering

12 Dec, 2018
by Colin Hawkins
Dutch Central Bank regulates crypto companies to cut down on money laundering

The Dutch Central Bank, otherwise known as De Nederlandsche Bank, is regulating crypto companies by making them get licenses in order to operate. This news comes from the Dutch daily newspaper, De Telegraaf.

The bank expects that the addition of requiring licenses in order to operate as a crypto company will cut down on the money laundering and other illegal activities, such as using crypto to fund terrorism. Those interested in obtaining a crypto license must report out of the ordinary transactions and know who the types of customers they are dealing with.

The Dutch Central Banks worries are justified just due to the statistics of money laundering and crypto over the past couple years. Over the course of the past two years more than $88 million was laundered through 46 different crypto exchanges, according to the Wall Street Journal.

One of the more well known cases of money laundering through crypto is the website Backpage, laundering millions of dollars in Bitcoin. The classified website, known for shady sex-advertising, used various crypto exchanges to launder their money through. Along with being accused of money laundering, they are also accused with conspiracy, and facilitating prostitution by the Justice Department.

As quoted by the Justice Department, they allegedly believe Backpage has laundered money through multiple exchanges:

“Backpage furthered its money laundering through the use of bitcoin processing companies. Over time, Backpage utilized companies such as Coinbase, GoCoin, Paxful, Kraken and Crypto Capital to receive payments from customers and/or route money through the accounts of third parties.”

Although crypto always gets a negative image due to money laundering and illegal activities surrounding the currencies, it is still important to remember that money laundering still occurs through fiat currencies as well.

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