One Dutch Bitcoin exchange has taken legal action against the central
bank over its controversial crypto wallet verification law.
Dutch Bitcoin exchange platform, Bitonic, has filed a preliminary injunction at a Rotterdam court seeking the suspension of a wallet verification rule enacted by the central bank.
Back
in November 2019, De Nederlandsche Bank, or DNB, mandated crypto
exchanges to ensure their users comply with stringent Know Your Customer
protocols. These rules included verification steps for withdrawal wallets, which Bitonic called a nuisance.
At
the time, Bitonic was only one of three licenses granted by the DNB out
of 38 applications to the central banks by crypto exchanges. Indeed, 25
out of 38 applicants also sent a joint letter to the DNB asking for
greater clarity about the need for such stringent compliance protocols.
According
to the company’s announcement, the DNB has reportedly failed to address
concerns raised by Bitonic over the controversial KYC rule. The
exchange also revealed that an independent compliance firm recently
provided expert advice on the matter stating that the central bank’s
actions lacked any legal merit.
For Bitonic, the introduction of
sweeping wallet verification protocol violates existing customer privacy
laws. “We believe it is of crucial importance that a judge considers
DNB's position so that it becomes clear whether the requirements are
legitimate,” the company added in its announcement.
Commenting on the goal of the lawsuit, the Bitonic announcement reads:
“Our
objective is to be able to quickly halt the comprehensive processing of
personal data imposed on us. We want to return to the situation where
we ourselves determine, on a risk-based basis, whether we ask the
customer to prove his management of the wallet.”
A
spokesperson for Bitonic told Cointelegraph that the company regrets
being forced to seek redress with the courts but the action was
necessary given the DNB's reticence to engage in dialogue over the
issues. The Bitonic representative also revealed that other exchanges
have expressed support for legal action:
"We do not know
if similar proceedings are prepared by other parties, but trust that the
court will recognize the broader relevance for not just the
crypto-industry but also its customers."
As previously reported by Cointelegraph, the additional KYC requirements are causing dissatisfaction among some crypto traders
in the country. Bitstamp has come in for some criticism over the
exchange’s perceived lack of pushback against the DNB’s policies.
The DNB did not reply immediately to Cointelegraph's request for comment.
source link : https://cointelegraph.com/news/dutch-bitcoin-exchange-drags-central-bank-to-court-over-wallet-kyc-rule
