Bitonic has tightened the wallet KYC rule

The Dutch-based crypto exchange has filed an injunction for KYC
  • Bitonic has filed a preliminary injunction regarding the De Nederlandsche Bank
  • The exchange is lacking clarity regarding the mandatory KYC guidelines
  • KYC verification violates the customer privacy laws of the country
  • Bitstamp has come in for some criticism over Bitonic’s perceived lack of pushback against the guidelines

Bitonic, a Dutch-based Bitcoin exchange platform, has filed a preliminary injunction at a Rotterdam court docket. In Q4 2019, the De Nederlandsche Bank (DNB) mandated the digital assets exchanges to ensure that the users control their withdrawal addresses.

Following the guidelines, Bitonic has informed its users that they need to comply with new verification measures to enjoy the exchange services. However, the exchange is searching for the suspension of a BTC wallet’s KYC verification rule enacted by the central financial institution.

Bitonic has clear concerns about the guidelines

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After taking the verification measures, Bitonic was solely considered only one license out of three granted by the central bank out of thirty-eight purposes to the DNB by the exchange. It is also known that the central bank has received a joint letter from 25 out of 38 candidates. The letter asks for higher clarity regarding the want for such stringent guidelines. 

Following the concern, the DNB was observed failing to handle the issue over the controversial rule. The exchange also revealed an independent advisory firm had provided expert advice. The firm stated that the DNB’s actions are lacking legal merit.

KYC verification violates the privacy law

According to Bitonic, the stringent protocol regarding KYC violates the existing customer privacy laws. The exchange stated that it is vital that the judge considers the central bank’s position to clarify the guidelines’ requirements. The exchange also mentioned that it’s objective is to quickly pause the processing of personal data imposed on the firm. The exchange only desires to return the situation to determine whether it asked the customer to prove his wallet’s use case.

Exchange regrets being forced to seek right

According to a spokesperson from Bitonic, the exchange regrets being forced to seek redress with the court and the action of the central bank’s reserve to engage in dialogue over the issues. It is also revealed by the spokesperson that the exchange has support for legal action. However, the KYC protocols are causing dissatisfaction among crypto users in the country. Bitstamp, a major crypto exchange, has also criticized Bitonic’s perceived lack of pushback against the bank’s policies.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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