25 July 2016
Find out more

Dutch central bank warns banks off Bitcoin

04 June 2014  |  7227 views  |  1 amsterdam

The Dutch central bank has issued a warning to the nation's banks about the perils of dabbling in bitcoin-related businesses.

DNB is breaking with the usual central bank convention of alerting consumers to the risks associated with virtual currencies by addressing its latest missive directly at the regulated banking and payments industry.

The Bank is concerned about the integrity risks posed to the nation's financial institutions by getting involved with bitcoin and the issues surrounding anonymity and anti-money laundering rules.

In a statement, DNB says: "In 2014, DNB will investigate whether banks and payment institutions are actively involved with new payment products such as virtual currencies and (it) will assess the degree to which these institutions control/manage their integrity risks. The control should include effective measures with respect to client acceptance and the monitoring of new innovative suppliers."

The move will be a blow to the nascent bitcoin industry in the Netherlands, which has so far been viewed as a liberal safe-haven for virtual currency business ventures.

Just last week, the UK government signalled its intention to address concerns about the application of the Money Laundering Regulations by banks, and in particular their use in denying access to banking services by firms trading in virtual currencies. To this end, the Treasury convened a Private Sector Consultative Forum in March with banks, firms, regulators and FATF member governments to "enable a better understanding (of) the risks from virtual currencies and how these might be mitigated, including by banks".

Comments: (1)

Alexander Peschkoff
Alexander Peschkoff - TEDIPAY - London | 04 June, 2014, 11:01

Don't they read news in the Netherlands?.. SV gang seem to have successfully lobbied Apple to allow "virtual currencies" into Apple's ecosystem.

That doesn't mean BTC will fly as it still needs to gain mass appeal. But that's another story altogether.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Bitcoin to have 'profound' impact on trust-based markets - Wedbush analysts

Bitcoin to have 'profound' impact on trust-based markets - Wedbush analysts

30 May 2014  |  7646 views  |  0 comments | 10 tweets | 6 linkedin
FCA to foster fintech innovation; Treasury pushes P2P, APIs and virtual currency

FCA to foster fintech innovation; Treasury pushes P2P, APIs and virtual currency

30 May 2014  |  13937 views  |  1 comments | 25 tweets | 17 linkedin
Bitcoin not a threat to banking system...yet

Bitcoin not a threat to banking system...yet

20 May 2014  |  8123 views  |  0 comments | 16 tweets | 7 linkedin
SEC issues alert on bitcoin risks

SEC issues alert on bitcoin risks

08 May 2014  |  5520 views  |  0 comments | 10 tweets | 4 linkedin
NAB turns its back on Bitcoin; cites reputational risks

NAB turns its back on Bitcoin; cites reputational risks

10 April 2014  |  5487 views  |  0 comments | 7 tweets | 6 linkedin
Wall Street industry group swallows Bitcoin red pill

Wall Street industry group swallows Bitcoin red pill

31 March 2014  |  14142 views  |  0 comments | 13 tweets | 5 linkedin
Mizuho faces legal action over MT Gox collapse

Mizuho faces legal action over MT Gox collapse

17 March 2014  |  3860 views  |  0 comments | 4 tweets | 8 linkedin
Singapore to tackle money laundering risks in bitcoin transactions

Singapore to tackle money laundering risks in bitcoin transactions

13 March 2014  |  4631 views  |  0 comments | 5 tweets | 3 linkedin
Bitcoin not a currency but has tech potential - Goldman Sachs

Bitcoin not a currency but has tech potential - Goldman Sachs

13 March 2014  |  7525 views  |  7 comments | 10 tweets | 5 linkedin
New York regulator starts accepting bitcoin exchange applications

New York regulator starts accepting bitcoin exchange applications

12 March 2014  |  8254 views  |  0 comments | 6 tweets | 4 linkedin
Bank of Ireland rejects bitcoin ATM firm's account request

Bank of Ireland rejects bitcoin ATM firm's account request

11 March 2014  |  4139 views  |  0 comments | 7 tweets | 7 linkedin
MT Gox goes up in smoke. Is this the end for bitcoin?

MT Gox goes up in smoke. Is this the end for bitcoin?

25 February 2014  |  6666 views  |  5 comments | 15 tweets | 10 linkedin
BMO closes the door on bitcoin businesses

BMO closes the door on bitcoin businesses

19 February 2014  |  4963 views  |  0 comments | 7 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euVisit capgemini.comFind out more

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8384 views 14 comments | 32 tweets | 37 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
8174 views comments | 6 tweets | 3 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
8058 views 0 | 14 tweets | 8 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
8015 views 3 | 19 tweets | 7 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7668 views comments | 22 tweets | 28 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job