Countless crypto companies are active in the Netherlands. This should come as no surprise, as the crypto market is a true growth market with great potential. However, it is also a market with risks, as cryptocurrencies are still frequently used by criminals. Therefore, you must take strict regulations into account. In some cases, you are required to register your company with the DNB (De Nederlandsche Bank). We explain how this works and what it costs.
Mandatory registration for some crypto companies
In some cases, crypto companies are required to register with the DNB. This registration requirement applies to Dutch crypto brokers and foreign crypto brokers active in the Dutch market. Additionally, the registration requirement also applies to those offering custodial wallets. Without this registration, it is not permitted to store or exchange cryptocurrencies. Doing so is even a punishable offense under the Economic Offences Act.
This is because cryptocurrencies are often used by criminals, for example to launder money or to finance terrorist groups. Therefore, such companies are placed under the supervision of the DNB. This ensures that they comply with anti-money laundering legislation. Providers of custodial wallets must monitor transactions, verify the identity of their customers, and so on. And the DNB checks whether they do this correctly.
Hand over a lot of information
Registration as a crypto company is a fairly complex process. A great deal of information must also be submitted to the DNB. This involves not only general company information, such as articles of association and a Chamber of Commerce extract, but also business plans, SWOT analyses, a description of business operations, and activity overviews.
In addition, an overview of the entire board must be submitted, including the governance and organizational structure. A file must be compiled for each director demonstrating that he or she is reliable and suitable.
Finally, the file must contain detailed information about business operations, for example regarding how laws and regulations will be complied with, which reporting procedures are used, how and when audits are conducted, and so on.
High costs and no guarantee of success
The DNB will only assess the substance of a high-quality and complete application. If the application is complete, the company will be registered within two months. Naturally, this is subject to the condition that you meet all requirements. This application costs €5,000. If new directors join after registration, or if a director's position or duties change, this must be reported to the DNB and you must apply for a new assessment. A suitability assessment costs €1,100 and a reliability assessment costs €2,000.
Legal advice for crypto companies
The application process is very complex and not inexpensive. The DNB therefore recommends consulting a legal advisor. At the same time, crypto entrepreneurs face complex regulations and must take into account that cryptocurrencies are not real money in the Netherlands, which has a number of legal implications. We therefore recommend seeking legal advice and being guided through the process. This is also advisable when drafting the necessary agreements and documents. Contact one of our experts and let us guide you. Read more about our approach and rates.
