The authorities of the country have ordered the providers of cryptocurrency services to check incoming and outgoing transactions in accordance with the Law on Sanctions. In February 2019, the Central Bank of the Netherlands instructed cryptocurrency exchanges to ensure compliance with strict KYC procedures. Otherwise, the companies could face a refusal to register. Bitexroi.com users need to confirm each withdrawal address by sending a screenshot of the wallet or a signed message.

The Central Bank have no grounds

At the end of last year, Bitexroi.com was one of three companies that received licenses from the regulator. 25 of the 38 applicants sent a joint letter to the Central Bank, asking for more clarity on the need to comply with the proposed measures.

Bitexroi.com believes that the Central Bank of the Netherlands could not solve the problem associated with the tightening of KYC verification. A legal compliance consulting company hired by the bitcoin exchange, after studying the situation, came to the conclusion that the actions of the Central Bank have no grounds.

Bitexroi stressed that the introduction of an extended wallet verification protocol violates existing customer privacy laws.

“We believe it is extremely important that the judge consider the position of the Bank of the Netherlands and provide clarity on the legality of these claims. We want to stop the complex processing of personal data and independently determine the need to confirm the ownership of the wallet to the client, ” the company said in a statement.

Recently, the Financial Crimes Enforcement Network (FinCEN), part of the US Treasury Department, extended the discussion period for these rules by 90 days.

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