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• The requirements violated the privacy of the users
• No technical merit of maintaining the addresses of recipients says Bitonic
• Crypto Exchange will have to ensure certain security protocols
Most nations across the globe are enforcing new regulations on cryptocurrencies. Dutch Central Bank (DNB) has climbed down on its decision to enforce stricter measures for withdrawing cryptocurrencies from exchanges.
Bitonic challenges the requirements in court
Yahoo News reports that the latest reversal in policy comes almost two months after Bitonic filed a petition challenging the stringent rules applied to cryptocurrency transactions. Earlier, Bitonic was asked to furnish additional data from their users, including the recipient’s address and a photo as proof that they indeed owned the address. The measures were enforced by Crypto exchanges Bitstamp and Bitonic.
Bitonic, the crypto exchange led by Daan Kleiman, had filed a petition against the stringent regulations implemented by the De Nederlandsche Bank (DNB), the central bank of the Netherlands.
Bitonic argued that it was a serious violation of consumer privacy. Bitonic also said there is no technical merit for verifying every address of each transaction.
The Dutch Court ruled in favor of Bitonic and decreed that there is no need to maintain the details of addresses where the transactions were made. The decision came on Thursday, and it was welcomed by Bitonic, who said that it was a vindication of its stand.
DNB agreed to the points put out by Bitonic and declared the objections well-founded, and revoked the wallet verification requirements. However, the Central Bank clarified that crypto exchanges must ensure that the person withdrawing the money is the actual recipient. It added that the state providers are free to choose the verification methods as per the cryptocurrency trade needs.
Nations are enforcing stricter regulations
Most nations worldwide, the latest China, are enforcing stricter regimens to ensure the security and better regulation of the cryptocurrency trade. The highly decentralized nature of the CryptoCurrency trade and lack of control often cited by its critics that terrorists and drug dealers could use it to siphon off their funds obtained by dubious means.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
