Amidst the clouds of reports that the Dutch central bank is considering options to regulate digital tokens, the Asian cryptocurrency market experienced a rise of Thursday morning.
On one hand, the Dutch Central Bank will soon be regulating the digital providers in the Netherlands. On the other, reports suggest that Spain is also planning a closer monitoring system for digital currency investors. Amidst these set of news making the round, Bitcoin (BTC) climbed 1.01% to $3,430.3, whereas Ripple (XRP) rose 1.12% to $0.30429, Ethereum (ETH) inched up 1.25% to $89 and Litecoin gained 2.11% to $24.086, at 10:50 PM ET (02:50 GMT).
In an attempt to prevent the use of cryptocurrency in money laundering or funding terrorism, the Dutch Central Bank will now monitor the cryptocurrency transactions. According to Dutch media De Telegraaf, the cryptocurrency services providers in the Netherlands will now require for a licence, for which they will need to “know who their customers are and report unusual transactions,”
A specific timeline of the implementation is disclosed, by the bank. In August, the bank released a report stating that while they don’t have plans to ban the use of cryptocurrency, they do not define the tokens as money.
In a similar attempt to prevent fraud and money laundering, the Spanish government listed and identified 15,000 digital currency investors to be monitored, last month according to Spanish media El Pais.
A Cambridge Centre for Alternative Finance report asserts that while Europe is planning to regulate cryptocurrencies, the industry actors are voluntarily taking measures to comply with existing regulations. Over one-third of cryptoasset service providers pose an in-house compliance team and more than half insist on know-your-client checks. The report further suggests:
“The increasing number of self-regulatory initiatives, combined with the emergence of sophisticated and professional services, reflect the growing maturity of the industry.”
Instead of forcing a crackdown, the regulatory environment is pushing crypto service providers towards a better and safer growth. The report also illustrates that in the first three quarters this year, the identity-verified users has grown to 35 million, nearly four times in comparison to the last year.
Service providers have also started adding multi-coin support, the trend grew from 47% last year to 84% this year. Cambridge said these changes are due to “the emergence of common standards on some cryptoasset platforms that has resulted in a rapid increase in the supply of tokens.”
Read more: Bitcoin Tops Googles’ Most Asked Trending List 2018
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