The Dutch cryptocurrency exchange Bitonic has just taken legal action against its country’s central bank. All this in connection with the controversial law regarding the verification of a cryptocurrency wallet.
Bitonic vs. central bank
The Dutch bitcoin exchange platform, Bitonic, is demanding a suspension of the cryptocurrency wallet verification policy that was passed by the central bank.
In November 2019, De Nederlandsche Bank (DNB) began requiring cryptocurrency exchanges in the country to verify their users through rigorous KYC protocols. The new rules also included the stages of verification of wallets for withdrawals of digital currencies, which Bitonic describes as very burdensome.
At that time, Bitonic was only one of the three companies on the market licensed by DNB.
The company says DNB reportedly failed to resolve the issues it spotted over its controversial KYC rule. The stock exchange also revealed that an independent auditing firm even stated that the central bank’s actions had no legal value.
In the case of Bitonic, the introduction of an extensive wallet verification protocol violates applicable customer privacy laws.
– We believe that it is extremely important that the judge considers DNB’s position so that it becomes clear whether the requirements [ banku] are justified – the company added in its announcement.
Commenting on the purpose of the lawsuit, the Bitonic statement reads:
“Our goal is to enable us to quickly suspend the complex processing of personal data imposed on us. We want to go back to the situation where we define ourselves on the basis of [analizy] risk whether we ask the client to verify the portfolio.
An alliance of exchanges
A Bitonic spokesman also told Cointelegraph that the company regretted being forced to seek redress in court, but action was reportedly necessary given DNB’s restraint on dialogue on these cases. A representative of Bitonic also revealed that other exchanges have expressed support for such legal action.
– We do not know if similar proceedings are being prepared by other parties, but we believe that the court will see a wider meaning [sprawy] not only for the cryptocurrency industry, but also for its customers The spokesman added.