Bitonic, one of the non-custodial cryptocurrency exchanges that is alive in Europe, announced that it intends to take the Central Bank of the Netherlands to trial for its anti-money laundering measures and user identification for the cryptocurrency market.
Citing “criminalization of the industry” and “concern for the privacy” of its customers, Bitonic recently released a statement stating that They are against the new regulation imposed by the authority on cryptocurrency exchanges. Measures to which the company has had to comply in order to continue operating legally in the Netherlands, after receiving a license to function as a provider of cryptocurrency services in this territory.
The exchange house specifically opposes two new regulations, which require cryptocurrency users to state the purpose of the purchase of these assets and to demonstrate the ownership of their addresses. Bitonic’s board of directors considers that this regulation threatens the privacy of its customers, since that users have to give screenshots of their wallets, notify the details of private operations and even indicate what type of wallet they use.
Bitcoin represents financial freedom and this freedom also includes financial privacy. From this perspective, the fact that all types of personal data end up in the hands of companies is a paradox, as well as a great risk. We will always be critical of these intrusive requirements. We not only have a legal duty to respect those surveillance laws, but a similar duty to respect and safeguard human rights such as privacy and the presumption of innocence.
In addition to the ideological conflicts generated by this new regulation in the cryptocurrency industry, Bitonic’s management pointed out that these requirements are not applicable in practice. “Since Bitcoin does not work on the basis of identities, this is practically and technically unfeasible,” they snapped. In this sense, they suggested that the regulation was created from the ignorance of the technology, adding that in the European Union there are other countries with better approaches to legalize the use of cryptocurrencies in their territory.
The exchange complained, but they didn’t hear it
In the statement, Bitonic representatives affirm that the company has tried to get the Central Bank to reconsider the decision, but the entity rejected their observations. Due to this, the exchange began to apply the new regulations to its clients so as not to have to close operations this year, as reported by CriptoNoticias last week.
However, the company now claims that will take your complaints to an independent judge and they expect the issue to be evaluated for resolution. In other words, Bitonic will initiate a procedure against the measures of the Central Bank of the Netherlands. The exchange house ended its statement stating that it is very disappointed in the situation, and points out that the Netherlands regulation is the “most extreme” they have encountered.
When it emerged last week that the exchange would apply these new regulations to its clientele, several members of the crypto community criticized the move. The exchange office already required users to verify their identity by means of a passport, identification card or driver’s license.
The exchange house hopes that thanks to the trial the authority will reconsider the new regulations. Source: pixel2013 / Pixabay.com
Now the company must also know how addresses are linked to these identities, which would allow the tracing of operations and violate the privacy of Bitcoin users. Action that annoyed the members of this community, who take refuge in cryptocurrencies in search of greater economic independence and protection of their personal data.
The company also points out that this practice would be violating the right of cryptocurrency users to “the presumption of innocence”, by treating this market as a criminal activity. And it is that regulators have always been concerned that Bitcoin and other digital assets serve for money laundering and terrorist financing, although only 1% of the bitcoin in circulation is of illegal use.
As this happens, more and more exchanges in the cryptocurrency market are forced to self-regulate or adapt to strict financial measures in order to survive in territories such as the European Union and the United States. Even exchange houses in Latin American countries, such as Brazil or Chile, have had to fight numerous battles in order to maintain their operations and protect the privacy of their users.