The central bank of the Netherlands, De Nederlandsche Bank NV (DNB), has granted AMDAX BV the ability to operate under its jurisdiction.
This marks the first time a digital asset company has been approved in the country following the introduction of strict new regulations that saw many crypto related businesses close or leave the Netherlands.
Receiving official registration from the governing body means AMDAX BV, an Amsterdam-based digital asset service company, can now give Dutch residents access to its offerings according to an Oct. 7 brief from Finextra.
The company told Cointelegraph in a statement:
"AMDAX B.V. has been registered by De Nederlandsche Bank (DNB) as the first provider of crypto services in the Netherlands. This enables AMDAX to process crypto transactions and store crypto currencies."
Fintech firms in the Netherlands must abide by European Union regulations, which have tightened significantly over the last few years, including its updated anti-money laundering laws, known as the 5th Anti-Money Laundering Directive, or AMLD5.
In September 2019, the DNB ordered any crypto-involved entities to register with the bank, noting January 2020 as the starting point for any approval requests.
Catering to institutions, as well as individuals, AMDAX BV began its journey toward AMLD5 approval back in May, Finextra reported. Although other crypto companies have previously operated in the country, the new AMLD5 laws caused such entities to close or move. Popular crypto derivatives platform Deribit left the Netherlands in January 2020.
AMDAX BV is reportedly the first digital asset firm registered under the new regulatory structure. “DNB justly applies high standards for this registration," AMDAX BV co-founder Valentino Cremona said.
"The market needs clear legal frameworks, such as the set of requirements of DNB," he added. "This registration shows investors that crypto is a mature asset class, not for criminals, but for smart investors."
AMDAX BV further noted in its statement that: "All crypto companies need to get this registration. Without it, they cannot operate in the Netherlands. The other Dutch crypto companies have up to November 21st to receive registration."
Regulatory oversight has also tightened in other regions with regulators in the U.S. recently going after crypto derivatives exchange BitMEX.