The Dutch Ministry of Finance'southward implementation of the European union's fifth anti-coin laundering directive, or AMLD5, requires the country's Central Banking company to monitor its cryptocurrency industry.

The cost of this supervision will be passed on to crypto-based businesses. A recent report suggests that these new compliance fees will be higher than those paid by traditional trust and credit carte companies.

I directive, twenty seven varieties

AMLD5 was supposed to bring increased transparency and a unified approach to anti-money laundering measures across the EU. Just the varying member states have each implemented different interpretations of the directive, ofttimes prioritizing their ain interests.

In the Netherlands, for example, the Ministry building of Finance has been accused of overreaching its authority over the appointment of the Dutch central bank, or DNB, to supervise cryptocurrency companies.

Local lawyer, Frank 't Hart, has been investigating how the Finance Ministry has presented its proposals to the Dutch parliament.

"This is much more than than what the [AMLD5] has indicated. This envisaged way of supervision is unusual."

Not simply unusual, but expensive too

Fifty-fifty before AMLD5 came into effect in Jan, many were disquisitional of the Dutch government' approach to the directive. Futures and options exchange, Deribit, moved operations to Panama, and the SimpleCoin mining puddle airtight downwards completely, in order to avoid compliance with the new rules.

At present that more information well-nigh the proposal has been made public, it appears that around fifty Dutch crypto companies will be expected to pay €one.7 million ($1.eight million) in fees for the key bank supervision.

According to a ministerial response to questions from the Dutch parliament, costs will exist distributed "in proportion to the turnover that has been obtained from offering services with virtual currencies. Parties with high turnovers will, therefore, pay more than supervision costs than parties with depression turnovers."

The Dutch Association of Bitcoin Companies is canvassing all relevant parties to point out that "performing supervision with an intensity that exceeds trust offices and credit card companies is not actually a take chances-based arroyo."

Prior to the COVID-19 pandemic, the measures and additional costs were being discussed in the parliament'southward outset sleeping room, which is the last phase before proposals become law. If such measures are passed into law, they may crusade a high number of crypto-related businesses to close.