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In a landmark judgment given by the Rotterdam district court, the Dutch Central Bank will now have to remove the verification requirements that were mandatory once for the bitcoin customers. Bitcoin has filed the complaint in court, citing these requirements are unlawful.
In one of its kind move, Netherlands-based crypto exchange Bitcoin has announced that the Dutch Central bank (DNB) will soon withdraw its controversial pockets verification requirements as the court has passed the order. The demands by DNB were unlawful and onerous as they required mandatory screenshots of the wallet.
The DNB, in its reply to the court, said that after a lot of consideration, the bank concludes that this interpretation of Article 2, given by DNB, is unable to do justice to the discretion that an institution has to implement this standard in a risk-oriented manner.
The dispute
The dispute between the company and bank was made in a court in Rotterdam and claimed that the imposed knowledge of the client’s clients KYC rules and pressured the clients to jeopardize the privateness of its customers.
In action taken against the bank, Bitcoin said the company had received a call from the bank about the objections made by Bitcoin. The regulator has shown its keen empathy towards the raised concern that the requirement introduced by the bank was illegal and by no means have been made throughout registration.
On the other hand, the Rotterdam District court had asked the bank the reason to imply such a registration requirement. The bank informed that the objection was well-founded and revokes its main resolution of 17th November 2020, as was quoted by Bitcoin.
The bank has now given an assurance to Bitcoin that they would scrap the requirements as soon as possible. While speaking to the Crypto news, Simon Lelieveldt, Compliance Advisor at Bitcoin, informed that they had received complaints from the corporates about the privateness infringements. Now that the matter has resolved amicable, they are relieved and see a beneficial business for them and the customers.
Bitcoin believes that the order that has come from the court will help the bank make broader policymaking for the Dutch crypto trade.
The background
In November 2020, bitcoin was registered as a crypto service supplier by the Central financial institution. The entity has made the conditional registrations, and the platform was necessary to implement particular management measures. This was done to confirm the possession and use of wallets and crypto addresses by the alternate purchasers.
During registration, Bitcoin has informed that the consumer identities were required, which were made by ID playing cards, passports, or driving licenses and hyperlink BTC wallets to identities. These were done in a similar way the banks create a personal bank account for his or her purchasers.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
