Dutch Bitcoin exchange drags central bank to court over wallet KYC rule
Dutch Bitcoin exchange platform, Bitonic, has filed a preliminary injunction at a Rotterdam court seeking the suspension of a wallet confirmation guideline enacted by the main bank.Back in November 2019, De Nederlandsche Bank, or DNB, mandated crypto exchanges to guarantee their users comply with rigid Know Your Customer protocols. These rules consisted of verification actions for withdrawal wallets, which Bitonic called a nuisance.At the time, Bitonic was just one of three licenses given by the DNB out of 38 applications to the reserve banks by crypto exchanges. 25 out of 38 applicants also sent a joint letter to the DNB asking for higher clearness about the requirement for such rigid compliance protocols.According to the companys announcement, the DNB has actually apparently failed to attend to issues raised by Bitonic over the controversial KYC rule. The exchange also exposed that an independent compliance company just recently supplied professional advice on the matter mentioning that the reserve banks actions lacked any legal merit.For Bitonic, the introduction of sweeping wallet confirmation protocol violates existing customer privacy laws. “We believe it is of vital value that a judge considers DNBs position so that it ends up being clear whether the requirements are legitimate,” the company included its announcement.Commenting on the objective of the claim, the Bitonic statement checks out:” Our goal is to be able to quickly stop the comprehensive processing of individual data imposed on us. We desire to return to the situation where we ourselves figure out, on a risk-based basis, whether we ask the client to show his management of the wallet.” A representative for Bitonic told Cointelegraph that the business regrets being forced to seek redress with the courts however the action was necessary offered the DNBs reticence to take part in dialogue over the issues. The Bitonic representative also exposed that other exchanges have expressed support for legal action:” We do not know if comparable procedures are prepared by other celebrations, however trust that the court will acknowledge the broader importance for not simply the crypto-industry however also its clients.” As formerly reported by Cointelegraph, the extra KYC requirements are triggering frustration amongst some crypto traders in the country. Bitstamp has actually come in for some criticism over the exchanges viewed absence of pushback versus the DNBs policies.The DNB did not respond right away to Cointelegraphs ask for remark. Title: Dutch Bitcoin exchange drags reserve bank to court over wallet KYC ruleSourced From: cointelegraph.com/news/dutch-bitcoin-exchange-drags-central-bank-to-court-over-wallet-kyc-rulePublished Date: Wed, 27 Jan 2021 11:15:07 +0000
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