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Dutch cryptocurrency exchange Bitonic has announced that Dutch central bank, De Nederlandsche Bank (DNB), "formally acknowledged" the exchange's view that its requirements on verifying cryptocurrency wallets were unlawful. The exchange said the regulator admitted that Bitonic was right.

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"After reconsideration, DNB comes to the conclusion that this interpretation of Article 2, second paragraph, RtSw, given by DNB, does not do enough justice to the discretion that an institution has to implement this standard in a risk-oriented manner. DNB has therefore incorrectly set the registration requirement as a condition for the registration of Bitonic," the company said in an announcement.

The exchange said it will remove the wallet verification measures "as soon as possible." Bitonic will also no longer ask for all transactions a copy of clients' wallet screenshot.

As iHodl reported, the DNB imposed restrictions on cryptocurrency exchanges with an additional verification measure regarding bitcoin (EXANTE: Bitcoin) addresses in November last year. Bitonic said that the DNB had "effectively forced" it to enhance verification process in reference to the Sanction Act.

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According to the Sanction Act compliance, institutions "must check incoming and outgoing payment transfers, and block and report them to DNB in the event of a hit."

In May 2020, the Netherlands-based cryptocurrency exchange BitKassa decided to close down its services due to the excessive demands of the DCB. The exchange said that the Dutch Ministry of Finance did a great job serving the Dutch Central Bank "in enforcing unreasonable regulation upon Dutch Bitcoin companies."

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