Digital assets were initially designed to be as anonymous as possible and serve their purpose as a peer-to-peer payment method. With anonymity being a major key feature of the assets, malicious actors use the advantage to perpetrate evil. To curb this menace, regulators are now rolling out various regulations to safeguard assets and organizations trading them.
Even though their regulations are seen as something worthwhile, prominent analysts argue that they are robbing users of digital assets by trying to know their identities through various KYC and AML regulations. Showing its displeasure at the current rule passed out by the Central bank in the Netherlands, a digital asset exchange has filed a motion at a court to reverse the law.
Bionic wants the court to nullify the current data gathering process
The central bank of the Netherlands rolled out a regulation some years back that would see several crypto exchanges and entities operating crypto-related activities follow specific rules. The bank asked the investments and entities to mandate their users to register and undergo various KYC registration before allowing them to carry on with their activities on their platforms.
According to the crypto exchange in question, Bionic wants a Rotterdam court to nullify the Central bank’s rule, which would see them pry into the details of all its customers trading in the platform. According to Bionic, the verification before withdrawal regulation was a terrible one coming from the central bank and does not sit well with them and their users.
When the rule was first rolled out, Bionic was awarded a license that would see the crypto exchange carry on with its activities. In contrast, other crypto exchanges began to ask for clarity as regards the new regulation. In their recent statement, Bionic mentioned that it had sent questions to the central bank to clarify the law, and their requests have not been answered.
Traders show dissatisfaction at the new regulation
To back up its motive for going to court, Bionic mentioned that it consulted a specialized firm in regulations and discovered that the Central bank had no right to roll out such principles. The firm said that the wallet law was very outrageous, and the bank has no right to make a law to that effect.
According to the company, they are waiting for what other crypto-related activities investment thing so that they would not be alone on their claim that the bank is trying to infringe on the citizens’ right. Bionic says it is looking for ways to suspend the mandatory data gathering that the crypto exchange has been subjected to by the DNB, the country’s central bank.
Furthermore, it says it wants to be the only one in charge of determining if a user is to be sanctioned or interrogated concerning their wallets’ activities. A previous publication by various news outlets has shown that the rule has been met with criticism as traders and investors in the crypto sector have asked crypto exchanges to boycott the law.