Crypto Firms in the Netherlands Win Legal Battle Against Excessive Fees
Crypto firms in the Netherlands, such as Bitvavo and Coinmerce, have achieved a partial victory in their legal battle against excessive fees imposed by Dutch regulators. They argued that these fees were discriminatory and went beyond the regulators’ legal authority.
A Rotterdam court ruled on Wednesday, October 4, that the Dutch Central Bank (DNB) had violated European Union law by charging crypto companies for registration related to anti-money laundering requirements. The court found that these fees violated EU anti-money laundering laws.
However, the court clarified that while the fee for 2021 was considered unlawful, these companies should still be subject to general governance norms and supervision. The ruling only applies to fees for 2021, and a separate case is ongoing for fees related to 2022.
The court found that the DNB had not provided sufficient justification for the fees and that they were overly burdensome for the crypto companies. The United Bitcoin Companies of the Netherlands (VBNL), which coordinated the complaint, welcomed the decision.
Dutch Central Bank Emphasizes Taxpayers Shouldn’t Bear Oversight Costs
The Dutch Central Bank (DNB) emphasized that taxpayers should not bear the costs of supervising the crypto sector. However, they acknowledged the court’s ruling and expressed their intention to hold further discussions with the finance ministry on the matter.
The DNB stated that they had operated within Dutch laws and regulations and that the ruling reaffirms their mandate to conduct money-laundering supervision of the cryptocurrency sector. European financial regulators typically fund their operations through fees charged to entities under their oversight.
Netherlands’ Strict Approach to Crypto Firms
The Netherlands has taken a strict stance on crypto firms, imposing significant fines on industry giants like Coinbase and Binance for their failure to register. In June, regulators accused Binance of providing services to Dutch customers without the proper license.
Gemini also recently announced its withdrawal from the Dutch market due to stringent regulations from the DNB. However, they expressed their intention to re-enter the market in the future.
Hot Take: Crypto Firms in the Netherlands Win Battle Against Excessive Fees
Crypto firms in the Netherlands have achieved a partial victory in their legal battle against excessive fees imposed by Dutch regulators. A Rotterdam court ruled that the Dutch Central Bank had exceeded its legal authority by charging crypto companies for registration related to anti-money laundering requirements. While this ruling only applies to fees for 2021, it sets an important precedent and highlights the need for fair and reasonable fees in the crypto industry. The court’s decision is a positive step towards creating a more favorable regulatory environment for crypto companies in the Netherlands.
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