Crypto Regulations in Netherlands

The key crypto regulations in the Netherlands are described in the Money Laundering and Terrorist Financing Prevention Act (Wwft). In 2020, the Wwft was amended to introduce rules arising from the European law—the 5th Anti-Money Laundering Directive (AMLD5). Under AMLD5, crypto companies must comply with AML/CTF standards. However, since the directive only provides European states with general “recommendations”, each state may choose how exactly they would like the changes to be implemented.

Source: The Sumsuber

In January 2018 the De Nederlandsche Bank (DNB) posted a position paper stating that cryptocurrencies do not fulfill the role of money and do not have any implications on monetary policy.[1] The Dutch Minister of Finance said in a letter to the Dutch parliament that a ban on cryptocurrencies is not desirable, but regulating cryptocurrency trade on a European or international level would be beneficial. [2] This regulation was implemented by the May 21, 2020, Dutch Implementation Act, subjecting only wallet providers and crypto exchanges to the fifth European Directive on Anti-money laundering and counter-terrorist financing (AMLD V).[3] Pursuant to AMLD V, crypto service providers must register with the DNB, comply with integrity rules for business conduct, request declarations of no-objection for anticipated qualifying holdings in the crypto service provider, implement AML policies consisting of KYC procedures, monitor transactions, and file Suspicious Activity Reports to local law enforcement.

Source: Freeman Law

Is cryptocurrency legal in the Netherlands? Yes. There are currently no regulations that explicitly prohibit the use or trading of crypto assets in the Netherlands. However, cryptocurrencies are still not accepted as digital money.

Source: Nota Bene

There are currently no regulatory restrictions in the Netherlands specifically concerning tokens or virtual assets other than cryptocurrencies. However, tokens or virtual assets may be in the scope of financial services legislation when qualifying as, for example, financial instruments. Offering such products or providing such services is prohibited prior to obtaining the relevant authorization. Furthermore, property law imposes specific requirements for the transfer of registered objects such as real estate and securities

Source: Legal 500

There are currently no border restrictions or requirements to declare cryptocurrency holdings when entering the Netherlands. Individuals carrying liquid assets such as cash to the value of €10,000 or more must declare this to Dutch Customs on entering the Netherlands from a country outside the European Union.

Source: Global Legal Insights

There is no crypto capital gains tax in the Netherlands. Rather, crypto is taxed as an asset. If the taxable base value of your assets (crypto and non-crypto) is more than 50,000 EUR, you are subject to the wealth tax (Vermogensbelasting) of 31%.

Source: TokenTax

We often get the question: how is the profit on my crypto taxed? In most cases, the Dutch tax office sees crypto as assets. So, you enter the value in box 3, which is good news for your wallet! In the Netherlands, there is no capital gains tax. It means that you do not have to pay tax on the actual return. Read more about the box 3 tax in this article. It may also be the case that you do not have to pay anything over the profit because there is tax-free capital (for 2021, this is € 50,000). Is your box 3 capital lower than € 50,000? Then you don’t have to pay taxes. Note that this is not only about the value of your crypto but your total assets (think of shares or savings).

Source: Tax Savers

Is cryptocurrency legal in the Netherlands? Yes. There are currently no regulations that explicitly prohibit the use or trading of crypto assets in the Netherlands. However, cryptocurrencies are still not accepted as digital money.

Source: Nota Bene

The Dutch government also introduced a raft of new regulations, including tougher KYC rules for digital currency transactions. The authorities want to prevent anonymity in cryptocurrency transactions thereby placing a ban on anonymous crypto accounts. “As part of Coinbase’s ambition to be the world’s most trusted and secure crypto platform, we have taken strides to work collaboratively with government, policymakers, and regulators to shape the future in a responsible way. Coinbase prides itself on being a compliance-led business. The Netherlands is a critical international market for crypto, and I am really excited for Coinbase to bring the potential of the crypto economy to the market here,” said Nana Murugesan, Vice President, International, and Business Development at Coinbase.

Source: Finance Feeds

Three arrests in the Netherlands in Belgian cryptocurrency fraud investigation Three people were arrested in the Netherlands in a Belgian investigation into a criminal organization engaged in cryptocurrency fraud, the Belgian Public Prosecution Service said. According to the authorities, this criminal organization targeted people on higher-end real estate platforms and arranged to meet them in Amsterdam, Maastricht, Brussels, Paris, Barcelona, or Milan.

Source: NL Times

The Netherlands is planning on bringing in harsher penalties for scams involving banking apps and cryptocurrencies. Proposed new legislation from the country’s Ministry of Justice and Security is aimed to align penalties for fraud utilizing these newer payment methods with those for crimes involving more traditional payments such as credit cards. Card crime already has a maximum six-year jail term, while currently the penalty is from one-to-four years for apps and crypto, NL Times reports on Wednesday.

Source: Coin Desk

Defining Energy Regulatory Sandboxes The idea behind a sandbox finds its origin in software engineering: a sandbox – as in a testing environment – for running potentially unsafe codes, without the risk of infecting the entire system. A regulatory sandbox is not unique to the energy sector and has previously been introduced in other sectors such as banking and healthcare. Actually, in a recent paper about Fintech regulation, I found one of the best descriptions of what a regulatory sandbox is.

Source: FSR EUI